The Cabinet of Tower Hamlets Council met on Tuesday 02 February 2016 to discuss a range of important issues, including the General Fund Revenue and Capital Budget, the Treasury Management Strategy, and the Housing Revenue Account (HRA) budget. Significant decisions were made regarding the licensing of the private rented housing sector and the late-night levy for licensed premises, with both proposals moving forward to public consultation.

General Fund Revenue and Capital Budget and Medium-Term Financial Plan 16/17

The Cabinet discussed the General Fund Revenue and Capital Budget and Medium-Term Financial Plan for 2016-17. Councillor Edgar presented the report, highlighting three changes agreed by the Mayor since the last meeting: the reversal of proposals to close ideas on Sundays, reduce corporate match funding, and a change regarding daycare services dependent on an alternative being in place. An additional change noted was the apprenticeship levy, now scheduled for April 2017 instead of April 2016, impacting the budget by approximately £800,000. The report also included a recommendation for the Mayor to agree with the Corporate Director of Resources on potential budget changes following the anticipated receipt of the final settlement letter from the government in February.

The Overview and Scrutiny (O&S) Committee had previously reviewed the budget and made several recommendations. Councillor Pearce, Chair of O&S, expressed disappointment that further information was still being requested at that stage, emphasizing the need for greater transparency and clearer communication of proposals to the public. He also highlighted the O&S Transparency Commission's Final Report, which was being considered. Discussions also touched upon specific savings proposals, including those related to bursaries for teacher training, the incontinence laundry service, and school crossing patrols, with clarification provided on the latter regarding schools' ability to fund these services themselves. A significant discussion point was the proposal to reallocate funds previously spent on additional police officers towards tackling anti-social behaviour (ASB) through the council's own ASB teams and youth services, while still advocating for increased police funding from the Mayor of London. The report also addressed a small reduction in the mainstream grants budget and the proposed deletion of the burial subsidy scheme, with explanations provided on the availability of alternative burial support and the low uptake of the existing scheme. The budget, with any material amendments, is set to go to the full Council for agreement in approximately three weeks.

Treasury Management Strategy

Councillor Edgar presented the Treasury Management Strategy, which includes three statutory statements. The strategy focuses on managing the council's cash flow and investments. The report indicated that investment income had exceeded the benchmark up to the end of December, contributing positively to council services. Adjustments to the strategy and indicators were proposed to reflect changes in the regulatory environment for banks. The report was recommended for submission to the full Council for agreement.

Housing Revenue Account (HRA) Budget Reports

The Cabinet reviewed the Housing Revenue Account (HRA) budget reports. Councillor Edgar explained the impact of the government's mandated 1% rent decrease, which would result in a £24 million loss of income over four years, affecting services and capital works. The report outlined assumptions made regarding the payment of a levy to the government equivalent to the estimated value of selling high-value homes, as well as details on the forthcoming pay-to-stay scheme for higher earners. The capital programme includes significant investment in decent homes work on 99 blocks, renewal of lifts in 13 blocks, measures to reduce overcrowding, and funding for aids and adaptations for residents. Councillor Islam added that the £11.5 million capital programme for external repairs and improvements would cover 99 blocks and approximately 600 homes, noting it was a smaller programme compared to the overall £185 million decent homes programme. He also mentioned ongoing work with officers to ensure lessons learned from the current programme are applied to future delivery. Councillor Blake introduced the passport report relating to the new build programme, outlining the budget and approach to utilising Right to Buy receipts, acknowledging that specific sites for new homes were still being identified.

Licensing of the Private Rented Housing Sector

Deputy Mayor Councillor Sureshul Islam introduced the report on a selective licensing policy for the private rented housing sector, aimed at tackling anti-social behaviour and promoting stable tenancies. The policy proposes selective licensing in the wards of Weavers, Whitechapel, and Spitalfields, covering 20% of the private housing stock due to government regulations. The report also referenced the Deregulation Act 2015, which addresses retaliatory evictions. The recommendations included considering additional licensing, subject to government direction, with a planned go-live date of October 2016. Mr. Tolley, an officer, elaborated on the need for ICT procurement to manage an estimated 6,000 applications. Councillor Peter Golds raised concerns about houses being converted into multiple occupation (HMOs) in conservation areas, leading to a decline in community cohesion. He urged the council to use existing powers to address this issue. Councillor Amy Whitelock-Gibbs welcomed the landlord licensing scheme and sought clarification on the ward selection and communication plans. Councillor Blake expressed keen interest in the outcome of the government's consultation on additional licensing, particularly for flatted blocks. The discussion also highlighted the distinction between selective licensing (requiring evidence of ASB) and HMO licensing (focusing on management standards and property conditions). Councillor Blake also noted that the scheme would support good landlords while holding less responsible ones to account. Councillor Meldrew suggested a joint letter to a minister regarding the issues with HMOs. Councillor Sharia Khatun shared personal experiences of poor living conditions in some properties. The Cabinet agreed to recommend the proposals for consultation.

Late Night Levy for Licensed Premises

Shariya Khatun introduced the proposal for a late-night levy, which would apply to licensed premises selling alcohol between midnight and 6 a.m. The levy, payable by license holders based on their rateable value, would be split between the licensing authority (30%) and the Mayor's Office for Policing and Crime (MOPAC) (70%). MOPAC has agreed that its portion would be allocated through the partnership. The retained funds would be used to tackle late-night alcohol-related crime and disorder. The report outlined potential exclusions for certain premises and a reduction for those participating in best practice schemes. The Cabinet was asked to consider going out to consultation, with a recommendation to start the levy at midnight, aligning with ASB and crime statistics. Councillor Pearce, representing a ward affected by late-night disorder, welcomed the consultation. Councillor Peter Golds highlighted shocking figures on anti-social behaviour in the Shoreditch area, supporting the timely introduction of the levy. He expressed disappointment at the 70/30 split with MOPAC and questioned the council's capacity for licensing enforcement. Councillor Peck, as lead member for economic growth, expressed caution, noting the potential impact on well-behaved pubs and the importance of community-based establishments. He stressed the need to carefully consider consultation responses. The Cabinet agreed to proceed with the consultation.

LIP Delivery Plan

Councillor Mia presented the Local Improvement Plan (LIP) delivery plan, which outlines traffic and highway improvements funded through Transport for London (TfL) LIP funding. The plan includes making the 20 mph speed limit permanent, delivering schemes from the new cycle strategy, and corridor improvements along Benson Road and Keefe Street. Bury Road in Hackney Wick will be resurfaced, and traffic management along Manchester Road will be enhanced. The reinstatement of cobbles in Perry Place off Roman Road is also prioritized. The Mayor noted that a review of the 20 mph zone monitoring reports would be conducted before its permanent confirmation. He also highlighted upcoming consultations on proposals for Cable Street, aiming to reduce rat-running traffic. Councillor Blake welcomed the investment in the housing zone area, emphasizing the need for improved connectivity. Councillor Islam raised concerns about the condition of several school crossings. The Cabinet agreed to the recommendations in the report.

Community Safety Partnership Plan Review and Extension

Councillor Kattun presented the proposal to extend the current Community Safety Partnership (CSP) plan, which was due to end in March. She explained the reasons for the delay in presenting the extension, including administrative changes and election issues. Tweaks to the plan include making prostitution a standalone priority, alongside ASB and arson. A pre-scrutiny question was raised regarding awareness of PREVENT and FGM interventions among teachers and professionals. Shazia Ghani, Head of Community Safety, provided details on the multidisciplinary approach to delivering these initiatives, emphasizing clear referral pathways and partnerships. She also mentioned additional funding from MOPAC for training on harmful practices. The Cabinet agreed to the recommendations, noting that most London boroughs were also deferring their reviews pending the outcome of the mayoral election.

Determination of School Admission Arrangements for 2017-18

Rachel Saunders presented the report on school admission arrangements for 2017-18. The report sought agreement on admissions for nursery, primary, and secondary schools, including schemes for coordinating admissions and planned admission numbers. There were no proposed changes to existing arrangements for primary and secondary schools, but modifications to testing arrangements for ability banding were proposed. Councillor Blake reiterated a previous observation about the lack of coordination in under-fives admissions, and Terry Bryan, Head of Pupil Admissions and Exclusions, confirmed that the authority would consult on coordinating nursery admissions to ensure fairness and accessibility. The Cabinet agreed to the recommendations.

Key Stage Examinations, 2, 4, and 5

Rachel Saunders provided an update on Key Stage examinations. She reported significant success at Key Stage 2 and GCSE levels, with attainment exceeding national and London averages. However, she noted that more work was needed at A-level and for 16-18 year olds. The report highlighted areas for improvement, including the attainment of white British pupils and boys compared to girls, and pupils of Somali background. A significant risk was identified regarding potential reductions in school funding from the government. The Cabinet agreed to the recommendations.

Draft Outline Strategic Plan

Mr. Kewin introduced the draft outline strategic plan, which sets out the council's high-level priorities and objectives for the next three years, along with supporting narrative and performance indicators. The plan is part of the council's performance management framework. The Cabinet was informed that a more detailed delivery plan would be developed and presented in April. The Mayor highlighted two priority outcomes: excellent public services for all and focusing resources on areas needing particular attention. The Cabinet agreed to the recommendations.

Best Value Plan Progress Update

Kevin Kewin presented an early draft of the six-month progress update on the Best Value Plan, which is due to be submitted to the Secretary of State. The report details progress against seven action plans, with substantial delivery achieved in areas such as elections and the recruitment of statutory officers. Progress was described as strong in the remaining five areas, with most actions nearing completion. The Mayor emphasized the significance of this report, detailing the background and work undertaken since the adoption of the plan, including improvements in procurement, grants, property and disposals, communications, organisational culture, and election management. He highlighted the move away from perceived patronage in grant allocation and the focus on transparency and openness in organisational culture. Councillor Saunders stressed the importance of communicating these changes to local communities. Councillor Islund congratulated the Mayor on his leadership and commitment, noting the positive progress. The Cabinet agreed to note the report and delegate authority to the Mayor and Chief Executive to make any final changes before submission.

Mayor's Individual Executive Decisions

The Mayor's individual executive decisions were noted. These decisions, available on the internet, included the Partnership Task Force program concerning the procurement and renewal of services with the Metropolitan Police Service. The Cabinet agreed to note this item.