The Overview & Scrutiny Committee of Tower Hamlets Council met to discuss the proposed budget for the upcoming financial year, with a particular focus on council tax increases, service provision, and potential savings. Key decisions included the proposed 3.4% council tax increase and a significant reorganisation of the Community Language Service, which will involve introducing fees and consulting on alternative delivery models.

Council Tax and Budget Overview

Mayor John Biggs and Councillor Candida Ronald, Lead Member for Resources, presented the council's budget proposals, outlining a continuation of the three-year rolling budget programme. The budget aims to balance excellent service delivery with support for those in particular need. Key priorities include improving children's and adult social care, delivering 2,000 new council homes, focusing on regeneration for employability and skills, and tackling crime and anti-social behaviour. A significant proposal is the increase of council tax by 3.4%, comprising a 2.4% inflation-linked rise and a 1% adult social care precept. This increase would keep Tower Hamlets' council tax among the seventh lowest in London. Concerns were raised about the upcoming government fair funding review, which is anticipated to redistribute resources away from boroughs like Tower Hamlets. The council has lost approximately one-third of its headcount since austerity began, yet is expected to maintain or increase service levels.

Financial Resilience and Reserves

Councillor Kyrsten Perry raised concerns about external factors such as Brexit and the fair funding review, seeking reassurance about the council's resilience. Officers explained that the budget is built on a set of assumptions, with general reserves available to mitigate unforeseen risks. A £3 million contingency is included annually to accommodate unforeseen eventualities like savings slippage or additional demand. While there is no specific Brexit reserve, the council has undertaken extensive Brexit preparation. Reserves are considered to be above the minimum required, providing a strong position to respond to unexpected events. The council benchmarks its financial practices against other local authorities, with its Section 151 officer ensuring prudent reserve levels.

Impact on Residents and Fees and Charges

Councillor Mufeedah Bustin questioned the assessment of the impact of the council tax increase on residents, particularly those on low incomes. The council tax reduction scheme is highlighted as a mitigating factor, with 27,000 households not paying the full council tax. The budget also includes proposals for changes to fees and charges. While most are expected to rise in line with inflation, some, such as planning fees and a proposed diesel surcharge, are expected to increase beyond inflation. An increase of 90 pence for meals on wheels was proposed, which is less than the officer recommendation but more than inflation. The council is examining the viability of the hot, daily-cooked, door-delivered meals on wheels service, as few other local authorities continue to provide it.

Community Language Service

A deputation representing the Community Language Service expressed strong opposition to proposals that would lead to the dismantling of the service over three years, primarily through the introduction of fees. The service, established in 1985, caters for nearly 2,000 learners and has played a vital role in promoting cultural cohesion and academic achievement, with pass rates exceeding 92% for GCSEs. Representatives argued that the proposed fee structure would make the service unaffordable for many families, particularly those on low incomes, and would effectively end the service. They called for the withdrawal of the proposal and for consultation with the 47 community organisations that support the service. Councillor Amina Ali, Lead Member for Children, Education and Families, acknowledged the value of the service but highlighted the significant government funding cuts facing the council, requiring a £44 million saving over three years. She stated that the Community Language Service is a discretionary, not statutory, service and that the proposal involves a three-year process of consultation, with redundancy offers for current staff in the first year. The proposed fee is between £5 and £8 per week, with the aim of making the service more efficient and viable, aligning with models used in other London boroughs.

Children's Services and Education

Councillor Danny Hassell presented proposals related to children's services, including continued grant funding for the Tower Hamlets Education Partnership (FEP) for three years at £250,000 annually. FEP carries out statutory functions for the council, including school improvement services, which the council no longer provides in-house. Concerns were raised about FEP's effectiveness, with questions about monitoring, KPIs, and whether membership fees offset running costs. Councillor Hassell stated that FEP is developing a new three-year plan with benchmarking and KPIs, and that the council's investment in FEP is towards the lower end compared to other boroughs. He also presented an early help growth bid of £300,000 for the current year, to delay the second phase of an early help restructure, and an additional £475,000 for 2020-21 to replace funding lost from the government's Troubled Families Scheme. Savings proposals were also outlined for adoption allowances, by aligning eligibility duration with national guidelines, and for fostering grants, by offering an underspend of £150,000. A traded model for parent and family support services includes a £90,000 saving from removing the head of the school safeguarding team post, with management transferring to the head of the virtual school.

Adult Social Care and Commissioning

Councillor Denise Jones, Lead Member for Adult Wellbeing, presented proposals for efficiencies in commissioned services for adult social care. These aim to increase the use of home care and direct payments to reduce reliance on residential and nursing care placements, thereby promoting independence and choice for service users. The proposals include increasing supported accommodation, extra care, and sheltered housing. A saving of approximately £18,000 per person per year is anticipated by moving individuals from residential care to supported living. The council aims to bring residents currently receiving care outside the borough back into Tower Hamlets. Integrated commissioning efficiencies are also proposed to streamline commissioning costs and achieve better value, with no anticipated staff impact. The Mayor, John Biggs, acknowledged the significant year-on-year growth in demand for adult social care, estimated at £4 million annually, and the challenge of balancing this with budget constraints. He noted that while some savings are being made, the council cannot indefinitely fund the increasing demand solely through savings. The proposals aim to improve the quality of life for vulnerable people by supporting them to live in their own homes for as long as possible. The Day Opportunities Centre on Stepney Way is not facing closure but is being piloted with more flexible working arrangements and sessions in community centres to better meet needs.

Parking and Environmental Initiatives

Councillor David Edgar, Lead Member for Environment, presented proposals for growth in environmental services. This includes bringing the waste service in-house, with an environmental quality team to make improvements. The environmental noise service hours are to be extended to cover more issues, including construction noise outside permitted hours. Growth bids also support work on the environment, aiming to make the borough more attractive, reduce air pollution, and improve walkability. School streets initiatives are being developed to discourage parking and improve safety around schools. A proposal for a diesel surcharge was mentioned as a measure to encourage environmentally beneficial behaviour. The council is also exploring the provision of parking spaces for people in social housing who have car-free housing but require a vehicle. The introduction of an anti-idling policy aims to change behaviour and reduce air pollution, rather than generate significant revenue.

Other Discussions

Councillor Andrew Wood, representing the Conservative group, noted the significant workload for the two opposition councillors and stated that the group would submit its own budget proposals for consideration at the full council meeting. He highlighted the importance of behaviour change in the budget, whether related to transport, parking, or the elderly, and stressed the need to consider equality impact assessments to ensure that vulnerable individuals are not disproportionately affected. The Mayor and Councillor Candida Ronald provided concluding remarks, reiterating the budget's focus on protecting frontline services, investing in the future, and addressing the needs of vulnerable residents. They acknowledged the potential impact of proposed changes on the workforce and service users, and committed to mitigating these impacts. The Mayor also clarified the proposal regarding the Community Language Service, stating it involves a reorganisation and contraction of the current service, not fundamentally about introducing charges, but about adapting the service delivery model.