The Overview and Scrutiny Committee met on Tuesday 28 July 2026 to review the council's performance and financial position. Key discussions included the Strategic Delivery and Performance Report for Quarter 4 of 2025-2026, and two Budget Monitoring Reports for 2025-2026 and 2026-2027.

Strategic Delivery and Performance Report Q4 Outturn 2025-2026

The committee reviewed the Strategic Delivery and Performance Report for Quarter 4 of the 2025-2026 financial year. Of the 54 strategic performance measures, 34 were reported as 'green' (meeting or exceeding targets), indicating positive performance. Five measures were 'red' (below target) and six were 'amber' (between target and minimum target). Notably, two measures previously rated 'red' had improved to 'green', and two 'amber' measures also moved to 'green'.

Councillor Rupert George raised concerns about the 'red' status of the overcrowded households measure, questioning whether it was primarily a supply or management issue. Councillor Abou Talha Chowdhury, Cabinet Member for Finance, Assets and Governance, acknowledged that overcrowding is a significant problem and a top priority, attributing the challenge predominantly to a supply issue. He also explained that while the council had successfully moved families from temporary accommodation into social housing, this could impact the availability of properties for overcrowded households on the waiting list.

Councillor George also inquired about the absence of a specific measure for social housing readiness for the 2035 gas phase-out date, highlighting the significant challenge of retrofitting and insulating homes. Jonathan Lloyd, Strategic Director for Change and Improvement, agreed that this was a valid point and suggested it could be incorporated into the development of future performance measures. Councillor Chowdhury added that while a condition survey is underway and a substantial investment is planned for property upgrades, the decarbonisation of communal heating systems and heat networks is an ongoing challenge.

Budget Monitoring Reports 2025-2026 Provisional Outturn and 2026-2027 Period 2

The committee also examined the Budget Monitoring Reports. Councillor Kamrul Hussain, as scrutiny lead for finance, questioned the significant reduction in the Council's risk reserve and sought assurance on its appropriate level. He also asked about the realism of the £69.8 million savings target for 2026-2027 and potential risks and mitigation strategies.

Councillor Chowdhury explained that the use of reserves was planned, acknowledging ongoing demands in areas like homelessness, temporary accommodation, and adult social care. He stated that the council remains financially healthy compared to other London boroughs, with close to £100 million in reserves. However, he stressed that reserves cannot be relied upon continuously and that efforts are being made to scrutinise budgets and drive down spending.

Regarding savings targets, Councillor Chowdhury confirmed that the vast majority are on track or have been delivered. He assured that the council would actively pursue any at-risk savings, aiming to recover as much income or savings as possible.

Councillor Abulkashem Mohammed Helal questioned the £1.2 million saving at RICs and £1.5 million saving at Unluckily, asking for clarification on the reasons and the entities in place to manage the £2.4 million overspend across the HSC. Councillor Chowdhury responded that national pressures in adult social care mean the council has a statutory duty to provide care, and significant demand is driving overspends. He indicated that departments are working on mitigations and that the council is not in a position of requiring exceptional financial support, unlike many other authorities.

Councillor Iqbal Hossain raised concerns about the £14.7 million overspend in supporting families, particularly residential placements and fostering, asking about efforts to reduce reliance on external placements and the confidence in early intervention. He also questioned the growing deficit in the Dedicated School Grant (DSG), forecast to overspend by £21.7 million, and sought evidence of the SEND reform plan's impact.

Steve Reddy, Corporate Director of Children's Services, explained that while Tower Hamlets has a relatively low number of children in care compared to other boroughs, the costs of external placements are significant. He detailed efforts to recruit more in-house foster carers and avoid costly residential placements. Regarding the SEND deficit, he acknowledged it as a national issue and highlighted the council's work with partners, including headteachers, to promote mainstream school provision and invest in making schools adaptable for children with additional needs.

Bridget Cameron, Interim Director for Commissioning, elaborated on the pressures within adult social care, emphasizing that it is demand-led. She outlined strategies to commission services more effectively, negotiate better deals with the market, and review care packages to identify more cost-efficient approaches. Richard Ennis, Interim Corporate Director for Resources, added that successive governments have struggled to resolve the funding issues in social care, and that the SEND budget deficit is a national concern.

Appointment of Representatives for the Inner North East London Joint Health Overview and Scrutiny Committee

Following discussion at Health Scrutiny, the names put forward for representatives for the Inner North East London Joint Health Overview and Scrutiny Committee were Councillor Abul Qashem Halal, Councillor Iqbal Hussain, and Councillor Oti Swinyard. These names were noted.

Other Business

The committee noted that one outstanding action log item from the previous meeting would be tabled at the next meeting. They also discussed pre-decision scrutiny questions for forthcoming Cabinet items and noted a late report to Cabinet regarding the Beatriz State School expansion.

The meeting then moved into the first part of its work programme workshop.