The Overview & Scrutiny Committee of Tower Hamlets Council met on Wednesday 14 August 2019 to discuss two call-ins regarding decisions made by the Mayor in Cabinet. The committee decided to refer the decision on the Local Community Fund back to the Cabinet for reconsideration, requesting a delay of up to six months. For the Tower Hamlets Homes management agreement, the committee voted to refer the decision back to the Mayor for reconsideration in January 2020, following a new, more comprehensive consultation process.

Local Community Fund Call-In

The committee considered a call-in regarding the Local Community Fund (LCF) programme and funding to individual organisations. Councillors who requested the call-in argued that the process was not fair, disproportionately benefiting larger organisations and potentially leading to the demise of smaller, community-based groups. Concerns were raised about the suitability of the Eastern Community Foundation as an independent assessor, the lack of diversity in its senior management, and the potential for double dipping by organisations receiving funding from multiple council sources. They also highlighted that the process did not adequately reflect the council's voluntary and community sector strategy or promote sustainability.

Councillor Candida Ronald, Cabinet Member for Resources, and Councillor Asma Islam, Mayoral Advisor for the Voluntary and Community Sector, defended the decision. They stated that the LCF is an outcomes-based programme co-produced with the sector and that the council's £2.6 million budget received over £10 million in applications, necessitating difficult choices. They explained that mitigation measures were being developed to address identified gaps, including support for BAME communities and Somali-led organisations. They also defended the East End Community Foundation, highlighting its 25 years of experience and the diversity of its assessment panel.

Following extensive discussion and questioning, the committee voted to refer the decision back to the Mayor in Cabinet. They agreed to remove specific examples of organisations from the reasons for the call-in but retained concerns about the equalities analysis and geographical spread. The committee requested a delay of up to six months for the implementation of the LCF, with a commitment to further scrutiny of mitigation measures.

Tower Hamlets Homes Management Agreement Call-In

The committee then addressed a call-in concerning the extension of the council's management agreement with Tower Hamlets Homes (THH). The councillors who requested the call-in argued that the presumption in favour of openness, community engagement, and financial savings aspects of the decision were not adequately addressed. They questioned the length of the proposed eight-year extension, noting that other councils typically have shorter extensions and that the ALTIA report, which informed the decision, was not fully reflected in the Cabinet report. Concerns were also raised about the sufficiency of the four-week consultation period with residents, arguing it did not meet the council's own engagement strategy or provide adequate opportunity for meaningful input. They proposed a two-year extension to allow for a full peer review, risk assessment, and cost analysis, and for the decision to be made by full council.

Councillor Sirajul Islam, Cabinet Member for Housing, responded by stating that the consultation, which involved a letter to 21,000 tenants and leaseholders, exceeded statutory requirements and that the ALTIA report's findings, including focus groups and surveys, provided sufficient information for the Mayor's decision. He asserted that the lifting of the Housing Revenue Account (HRA) debt cap did not directly impact the cost of management services and that THH's performance had improved significantly over the past decade. He also argued that a shorter extension would create instability within the organisation.

After considerable debate, the committee voted to refer the decision back to the Mayor for reconsideration in January 2020. This referral will be accompanied by a request for a new, comprehensive consultation exercise and a full resident-led appraisal of options, including in-house management. The committee also noted concerns about the potential for duplication of services and complexity if THH were brought in-house, but ultimately supported the principle of further consultation and resident involvement before a final decision is made.