The Cabinet of Tower Hamlets Council met on Wednesday 29 July 2020 to discuss the impact of COVID-19, the council's financial strategy, and the future of youth services. Key decisions included approving a revised youth service delivery model, noting the severe financial challenges facing the council, and agreeing to a phased reopening of leisure centres.

Understanding the Impact of COVID-19

The Cabinet received a report detailing the significant and far-reaching impacts of the COVID-19 pandemic on Tower Hamlets. A key finding was the disproportionate impact on Black, Asian, and minority ethnic communities, leading to devastating health outcomes. The report highlighted increased demand for psychological therapies, with approaches rising from 406 in April to 1,147 in June. It also noted the positive impact of the Everyone In scheme on reducing rough sleeping, but warned of a potential increase in homelessness as eviction bans are lifted. The report also touched on the positive impact of lockdown on crime levels, but a rise in anti-social behaviour, and an increase in substance misuse treatment referrals. The Cabinet noted the report, acknowledging the ongoing challenges and the need to build on positive community engagement seen during the crisis.

Update on Youth Service Delivery Model

A significant portion of the meeting was dedicated to discussing the proposed changes to the youth service delivery model. The Cabinet was asked to approve tendering for a three-year contract for youth activity, valued at £1.2 million per year, and a four-month extension for the existing 12-month contract. The report outlined a mixed economy approach, combining commissioned and internally delivered services, aiming to provide a robust youth offer across the borough. Several members of the public, including young people and representatives from organisations like A-Team Arts, spoke passionately about the importance of youth services and the potential negative impacts of the proposed changes. Concerns were raised about the reliance on external funding for voluntary sector services, the clarity of the new model, and the potential reduction in provision. The Cabinet ultimately agreed to the recommendations in the report, with Mayor John Biggs noting the need for further conversation and careful consideration of the commissioning process to ensure quality and value for young people.

Medium Term Financial Strategy Refresh (2021-2022 Budget Planning)

The Cabinet was presented with a stark report on the council's financial position, highlighting the severe impact of COVID-19 on its budgets. The report detailed significant new gaps in projections for the next year, with an estimated deficit in the council tax collection fund of £31.7 million for 2020-2021. Councillor Candida Ronald, Cabinet Member for Resources, emphasised the unprecedented drop in income and the uncertainty surrounding future economic recovery. The report indicated that without additional funding, the council would face difficult decisions and potential cuts to frontline services. The Cabinet noted the report, acknowledging the challenging financial context and the need for further work on budget planning.

Safe and Viable Reopening of Leisure Centres

The Cabinet discussed the plans for the safe reopening of the borough's leisure centres, which had been closed since March due to the pandemic. The report sought approval for contract variations to support Greenwich Leisure Limited (GLL), the current provider, and to assist Poplar Baths. The proposed measures included financial assistance to GLL and a phased reopening plan. Concerns were raised by Councillor Peter Golds and Councillor James King about the potential impact of price increases on existing users and the future of facilities like Tiller Road. The Cabinet agreed to the recommendations, with amendments to ensure the Mayor and lead member were involved in the phased restoration plan and that the contract variation would be subject to further scrutiny regarding repayment schedules and profit sharing.

Understanding the Impact of COVID-19 on the Council's Strategic Plan

The Cabinet received a report on the refresh of the council's strategic plan, acknowledging that the COVID-19 crisis and associated budget pressures had necessitated a review of priorities. The report was presented as a first step in this process, with further work required on targets and revised measures. Mayor John Biggs highlighted the strategic plan's importance in translating manifesto pledges and government restrictions into actionable targets for the council. The Cabinet agreed to note the progress on the refresh and to receive a reiteration of the plan later in the year.

Financial Outturn Report 2019-2020

This report provided an overview of the council's financial performance for the 2019-2020 financial year. It forecast a general fund deficit of £10 million, attributed to demographic pressures, delays in delivering savings, and budget overspends. The report also highlighted a growing deficit in the Dedicated Schools Grant (DSG) and a projected fall in the Housing Revenue Account (HRA) balance. The Cabinet noted the report and agreed to the proposed transfer of £11.7 million from the new homes bonus earmarked reserve to top up the general fund.

Budget Monitor Report

The Budget Monitor Report for the current financial year indicated a projected deficit of £12.9 million on the general fund. This was attributed to COVID-19 related costs and loss of income, as well as ongoing budgetary pressures from increased demand for services and the impact on savings plans. The report detailed COVID-related costs of £34.1 million and government support grants of £19.5 million, resulting in a shortfall. The Cabinet noted the report and agreed to the implementation of new measures to control spending, including hiring freezes and controls on agency staff recruitment.

Oakland School Use of Raines School Site (Lower Site)

The Cabinet considered a report regarding the use of the Raines School lower site for the expansion of Oaklands Secondary School. Following the closure of Raines Foundation School, Oaklands, an oversubscribed school, required additional capacity. The report sought approval to secure the Raines lower site for use in September and to progress the purchase of the site for Oaklands' expansion. The Cabinet agreed to the recommendations in the report, with Councillor Rachel Blake emphasising the importance of achieving value for money for Tower Hamlets residents.

Contingency Fund: Additional COVID-19 Support for the Voluntary and Community Sector

This report outlined changes to the criteria for the contingency fund to provide additional support to the voluntary and community sector during the COVID-19 crisis. The fund was to be divided into two areas: a COVID organisational support fund and a COVID repurposing fund, reflecting the sector's evolving needs. The Cabinet agreed to the recommendations in the report, acknowledging the importance of supporting third sector organisations.

MPS Safer Neighbourhood War Panels Action Plan

The Cabinet received a report on the Metropolitan Police Service (MPS) Safer Neighbourhood War Panels Action Plan. The report, which had been subject to scrutiny, outlined recommendations for improving community safety. The Cabinet agreed to the recommendations, with Councillor Asma Begum confirming that the action plan would be further developed and taken to the Community Safety Partnership Board.

CCTV Modernisation Programme

The Cabinet discussed the CCTV modernisation programme, which aimed to implement recommendations from a previous report and draw down capital funding for a new CCTV system. Concerns were raised about the technical issues delaying the installation of a camera offered by the Salvation Army in Garford Street. The Cabinet agreed to the recommendations, noting that the Garford Street camera installation was committed but subject to technical resolution.

Loneliness Task Force Progress Report

A progress report on the Loneliness Task Force, established in 2018, was presented. The task force had identified the need to address loneliness and isolation across all service areas and had found that existing voluntary sector activities had been amplified during the COVID-19 pandemic. The report highlighted the need to tackle digital exclusion and gather more data on the issue. The Cabinet agreed to note the report and to have a more detailed presentation at a future meeting.