The Overview & Scrutiny Committee of Tower Hamlets Council met on Tuesday 10 September 2024 to discuss the Q1 budget monitoring report, business rates risks, and the refresh of the transport strategy. Key decisions included noting the Q1 budget monitoring report, which highlighted significant pressures in homelessness, adult social care, and special educational needs, and agreeing the Overview and Scrutiny Committee Work Programme for 2024-25.

Budget Monitoring 2024/25 Q1

Julie Lorraine, Corporate Director for Resources and Deputy Chief Executive, presented the Q1 Budget Monitoring report for 2024/25. The report indicated a forecast overspend of £13.3 million for the General Fund, primarily driven by national pressures in homelessness, adult social care, and special educational needs, which are amplified in Tower Hamlets due to local factors. Temporary accommodation costs for homelessness were highlighted as a significant concern, with numbers increasing by 14% compared to the previous year. Adult social care is also facing pressures due to rising demand and costs, while special educational needs are impacted by the need for educational psychologists and increased transport costs for children with special needs.

Councillor Ahmodur Khan raised concerns about the £3.2 million forecast overspend within the Communities Directorate and questioned the adoption of a zero-based budgeting approach. Officers explained that zero-based budgeting would involve reallocating resources from underspending to overspending codes. Councillor Bodrul Choudhury inquired about a £23.9 million underspend in the Communities Directorate's performance, which officers clarified was related to capital expenditure and slippage on projects like St George's Leisure Centre.

Concerns were also raised about the Chief Executive Office Directorate forecasting an overspend, particularly in Legal Services. Officers explained that the pressure is largely due to recruitment challenges and the reliance on agency staff for difficult-to-fill posts. Reserve money had been budgeted to fund services in this directorate, separate from the general fund, as it was deemed the most appropriate source of funding during budget drafting.

The committee noted the report, acknowledging the challenges and the mitigating actions being taken.

Business Rates Risks

Julie Lorraine and Chris Leslie, Head of Strategic & Corporate Finance, presented an overview of the Business Rates Risk (BRR). They explained how business rates are charged, collected, and distributed, highlighting that Tower Hamlets retains 30% of the business rates collected, making it a crucial income stream. The council's budget for business rates income is £173 million.

A significant risk identified was business rates appeals, where businesses can appeal their property valuations, potentially leading to refunds for prior years. The committee heard that appeals can spiral once a precedent is set, and these are handled independently of the council, often without the council being consulted for evidence. The presentation detailed historical rate reduction levels, showing a significant spike in 2023/24, with the top five successful appeals alone totalling £22.4 million.

In response to questions about risk assessment and future budgeting, officers explained that budgeting has been built up with smoothing reserves, which have protected the council in 2024/25. However, the council will need to rebuild these reserves in the coming years. The committee noted the presentation.

Transport Strategy Refresh

Councillor Shafi Ahmed, Cabinet Member for Environment and the Climate Emergency, provided an update on the refresh of the 2019 Tower Hamlets Transport Strategy. The refresh aims to align the strategy with current guidance and local and London-wide visions, integrating it with key policy areas such as the Strategic Plan, Local Plan, Road Safety, Walking & Cycling, and the Parking Enforcement Plan.

Key points raised by the committee included:

• Safety for Women and Girls: Ensuring this is a priority throughout the strategy.
• Electric Vehicle (EV) Charging Points: Officers confirmed that the rollout of various charging models would be accessible to all residents, and that existing parking bays would not be exclusively designated for EVs to maintain parking availability for all.
• Accessibility: Acknowledging progress on residents with mobility issues but recognising the need for further work on pavement issues and engaging with stakeholders to strengthen the strategy's focus on accessibility.
• Third-Party Land: While direct capital improvements are not possible on non-public land, the council will work with Registered Social Landlords (RSLs) to share best practices and achieve improvements.
• Cycle Hire Schemes and Illegal EV Batteries: The council works with the GLA and other London organisations to address issues with cycle hire schemes, noting a lack of specific legislation. Trading standards officers are working to ensure only legal EV batteries are sold, and awareness campaigns are being conducted with delivery partners.
• Cycling Infrastructure: The strategy will focus on improving infrastructure for cycling and pedestrian safety, including clearer shared spaces and education programmes.

Members raised concerns about implementing cycling schemes and safety initiatives given the administration's manifesto, which was perceived as critical of some of these schemes. Councillor Shafi Ahmed acknowledged a current judicial review on liveable streets work but highlighted that the council has received funding for tree planting and other green measures.

The committee noted the update.

Local Government & Social Care Ombudsman Final Decision and Service Action Plan Response

Councillor Abdul Wahid, Cabinet Member for Customer Service, Equalities and Social Inclusion, presented an overview of the Local Government & Social Care Ombudsman's final decision and the resulting Service Action Plan, including a draft reasonable adjustment policy. The Ombudsman's decision related to a Blue Badge renewal process and highlighted a fault in the council's handling of reasonable adjustments, causing avoidable distress and time and trouble for the complainant.

The committee raised questions about continued engagement with stakeholders, ensuring offline, face-to-face service presence, and how the council will enforce reasonable adjustments across all services rather than on a case-by-case basis. Officers confirmed that further consultation with partners would occur and that a reasonable adjustment policy would be shared. They also stated that the council is working towards consistent engagement across all contact methods, including phone, face-to-face, and online options. Tracking improvements will be implemented to ensure change is seen and felt across the council.

The committee noted the decision and action plan.

Final Overview and Scrutiny Committee Work Programme 2024-25

The Chair introduced the final draft of the Overview and Scrutiny Committee Work Programme for 2024-25. Members expressed concern that the Mayor was only scheduled to attend the committee once for a spotlight item. Officers confirmed that while there is only one dedicated spotlight item, the Mayor is invited to attend other scrutiny sessions throughout the year.

The committee agreed the Overview and Scrutiny Committee Work Programme 2024-25.

Scrutiny Annual Report 2023-24

The committee agreed the Overview and Scrutiny Annual Report for 2023-24.

Pre-Decision Scrutiny of Unrestricted Cabinet Papers

Members agreed to ask questions on Cabinet Item 6.3, Time Banded Collections (Waste Services), concerning the communication of changes to residents.

The meeting concluded with the Chair thanking the attendees and officers. The next Overview & Scrutiny Committee meeting was scheduled for 15 October 2024.