The Hackney Council Scrutiny Panel met to discuss the Housing Ombudsman's Special Report on Hackney Council, which highlighted several areas of service failure, including repairs, damp and mould, and complaint handling. The panel also established a Budget Scrutiny Task and Finish Panel to review the council's budget and ensure it aligns with strategic objectives and community priorities.

Housing Ombudsman Special Report

The Housing Ombudsman, Richard Blakeway, presented the findings of the Special Report on Hackney Council, which was initiated due to concerns about the council's maladministration rate¹ and severe maladministration rate. The investigation, which commenced in October 2023, examined the council's performance in areas such as repairs, leaks, damp and mould, and complaint handling.

Mr Blakeway praised the constructive engagement of Mayor Caroline Woodley, the cabinet, and council officers during the investigation. He emphasised that the purpose of such investigations is to identify patterns of complaints and prevent future service failures. The report identified three key areas of concern: culture, basic service delivery, and learning and oversight.

• Culture: The report acknowledged the challenges faced by the council, including the London operating environment, the cyber incident, and the COVID-19 pandemic. However, it also noted that these issues compounded pre-existing weaknesses. Mr Blakeway noted a tendency within the council to overstate progress and accentuate the positive, which could hinder the identification of root causes. > There is sometimes can be a tendency towards accentuating the positive, you know, wanting to see progress, but then overstating that progress and the extent to which it's going to address some of the issues and lead to sustainable change. > > Richard Blakeway, Housing Ombudsman
• Basic Service Delivery: The report highlighted deficiencies in areas such as repairs, record keeping, knowledge and information management, complaint handling, policies, and risk management. For example, 71% of investigated complaints involving property conditions saw repeat appointments for the same repair.
• Learning and Oversight: The report raised concerns about the coherence and compatibility of various internal governance groups, as well as the information provided to them. It noted that while information was not necessarily inaccurate, it sometimes lacked context, hindering effective accountability and progress.

The report made 13 recommendations, including:

• Establishing an effective quality assurance framework.
• Improving knowledge and information management.
• Developing the role of internal governance, including the member responsible for complaints.

Mayor Caroline Woodley welcomed the report and acknowledged the issues raised, particularly regarding culture, basic service delivery, and learning and oversight. She emphasised the importance of supporting housing staff with appropriate structures and systems. Deputy Mayor Guy Nicholson echoed these sentiments, viewing the report as an opportunity to focus on improving the lives of residents.

Councillor Soraya Adejare raised concerns about the lack of a deep dive into the challenging funding climate and its impact on service delivery. Mr Blakeway acknowledged funding constraints but noted that the investigation focused on complaints and processes rather than specific funding issues. He suggested that inefficiencies in areas like repeat repairs indicated a lack of value for money.

Councillor Alastair Binnie-Lubbock asked how Hackney's performance compared to other local authorities and what could be learned from their experiences. Mr Blakeway noted a clear London dynamic in their casework, with a disproportionate number of cases involving London landlords. He stressed the importance of transparency, openness, and a holistic approach to service delivery, integrating housing with other relevant services.

Councillor George Gooch questioned how to foster a climate of accountability, openness, transparency and disclosure. Mr Blakeway said that the tone of leadership is important, and that data is a cultural issue.

Councillor Sophie Conway asked how the distinct oversight roles of Mayor and Cabinet, Chief Officers, Audits and Overview and Scrutiny are carried out in better performing local authorities. Mr Blakeway said that the action plan is a vital tool for transparency, and that the member responsible for complaints has an important role.

Councillor Zoe Garbett asked how confident Mr Blakeway was that the actions are going to be actioned on with urgency. Mr Blakeway said that he had no concerns that the landlord was not responding in the way that they would expect to see.

Several councillors raised concerns about the council's alternative dispute resolution (ADR) scheme, questioning its effectiveness and transparency. Mr Blakeway cautioned against incentivising residents to pursue ADR rather than resolving issues through the complaints process. He emphasised the importance of clear handling procedures and optimising the potential to respond through complaints.

Several councillors raised concerns about the council's housing management system, and the length of time it was taking to implement it.

Budget Scrutiny Task and Finish Panel

The Scrutiny Panel formally established a Budget Scrutiny Task and Finish Panel to review and challenge the effectiveness of resource allocation. The panel will focus on whether the proposed budget aligns with the council's strategic objectives and priorities, delivers value for money, and meets community priorities.

The panel approved the terms of reference for the task and finish panel and its core membership, which includes:

• Councillor Margaret Gordon (Chair)
• Councillor Clare Potter
• Councillor Lynne Troughton
• Councillor George Gooch
• Councillor Alastair Binnie-Lubbock
• Councillor Claudia Turbet-Delof
• Councillor Ben Lucas
• Councillor Joseph Ogundemuren

Councillor Alastair Binnie-Lubbock suggested adding business managers as appointees to the membership, as the Green Group and the Hackney Independent Socialist Group do not have whips². He also suggested removing the specific reference to the Labour group as the majority group. Councillor Margaret Gordon said that the task and finish group will be reconstituted and terms of reference will be agreed at scrutiny panel every year, so she did not think they needed to make any immediate amendments.

The panel also reviewed the scrutiny work programme for 2025/2026 and noted that the public consultation was closing on Friday, 30 June 2025.