The Skills, Economy and Growth Scrutiny Commission met to discuss corporate property management, fleet decarbonisation, and to plan their work programme for the coming year. Councillors reviewed the council's progress on asset transformation and fleet electrification, and discussed how these initiatives align with the council's strategic goals and financial position. The commission also agreed the minutes of their previous meeting held on 10 March 2025.

Corporate Property and Asset Management

The commission received an update on corporate property management and asset transformation, focusing on the council's response to recommendation six of the LGA Corporate Peer Challenge (CPC) review report[^1], which called for an acceleration of the council's asset review.

[1]: The Local Government Association (LGA) Corporate Peer Challenge is a process where councils invite a team of experienced peers from other councils to assess their performance and offer recommendations for improvement.

Councillor Rob Chapman, Cabinet Member for Finance, Insourcing and Customer Service, introduced the presentation, emphasising the importance of efficient resource management and the need to address financial challenges. Chris Pritchard, Director of Strategic Property Services, detailed the council's asset challenge process, which involves a continuous review of asset use and efficiency.

The council has been working to rationalise non-viable properties, incorporating this work into the Corporate Transformation Programme. This programme aims to address financial challenges and ensure the council is well-equipped for the future. The asset challenge prioritises non-core assets, which are properties not used for core council services like the town hall, Hackney Service Centre[^2], or libraries.

[2]: The Hackney Service Centre is a central hub for council services, designed to improve accessibility and efficiency for residents.

Examples of assets already disposed of include space at Clock House, 234 to 238 Mare Street, 2 Knarkford Road, and 2 to 16 Ashwin Street, which was sold to the existing occupier, V22[^3], funded by the Bennion Estate. 17 Sylvester Road is currently under offer for around £5 million.

[3]: V22 is an organisation that provides affordable workspace for artists.

Pritchard noted that some assets generate significant public interest, making disposals more complex. He highlighted the need to balance financial considerations with the social and community value of assets.

The council has been working to repurpose assets for alternative uses. Examples include:

• The Old Fire Station, which houses voluntary and community sector (VCS) organisations.
• The Marie Lloyd Centre, now let to Age UK[^4] as a community hub.
• 12-14 Englefield Road, a refurbished building let to the South & South East Asian Community Centre.
• 2-28 Belfast Road, repurposed into a GP surgery.

[4]: Age UK is a charity that provides support and services to older people.

Since 2011, the council has built a portfolio of around 900 temporary accommodation units through development, leasing, and acquisition. The council is also leveraging private sector investment to expand this portfolio, such as through an agreement with Chalk Hill to provide 300 units.

The council has secured £25.1 million in funding through the Public Sector Decarbonisation Scheme (PSDS) for projects across 26 sites, including schools. These projects aim to reduce carbon emissions and upgrade heating systems.

The council is working to improve the Energy Performance Certificate (EPC) ratings of its commercial estate, aiming to meet Minimum Energy Efficiency Standards (MEES). Assets that are not viable to upgrade may be considered for repurposing or disposal.

During the discussion, Councillor Clare Potter, Chair, questioned how the council balances long-term interests with short-term financial pressures. Pritchard responded that Hackney has historically avoided quick sales, prioritising the economic benefit the council can extract from owning assets. Councillor Chapman added that social value and support for voluntary sector organisations remain vital, but decisions must be weighed carefully in light of financial pressures.

Councillor Jon Narcross asked how confident the council is in generating as much value as possible from its corporate assets. Pritchard explained that the council's VCS policy has been successful in aligning services with council priorities. He added that the commercial estate maintains a high occupancy rate with commercial rents, and the asset challenge philosophy ensures continuous review and improvement.

Councillor Jasmine Martins asked how the council decides which properties can be let at market rent or capital lease, and what the risks are in each scenario. She also asked how Hackney's volume and type of assets compare to other boroughs. Pritchard explained that the council must meet the best consideration test[^5] when letting buildings, but can make exceptions for social value. He noted that Hackney's campus is unique, making direct comparisons difficult, but the council has steadily reduced its office space over the years.

[5]: The 'best consideration' rule in local government requires councils to obtain the best possible value when disposing of or leasing assets, ensuring they act in the best financial interests of their constituents.

Councillor Liam Davis asked about the capital investment required to transform closed schools and the EPC ratings of properties considered unviable to upgrade. Pritchard responded that the education team is evaluating options for surplus school sites, and the council is working with the Department for Education (DfE) to determine future uses. He added that the council is conducting ongoing surveys to assess the viability of upgrading buildings to meet EPC standards.

Councillor Penny Wrout raised concerns about the cost of maintaining empty schools and questioned how the council plans to recoup these costs. Pritchard explained that the council is working with the DfE to expedite the process of changing the use of these sites. He added that the council is exploring temporary accommodation options and considering community uses for the sites.

Councillor Gilbert Smyth asked what criteria are used when reviewing buildings and whether the council had engaged with the community regarding the toilet facility on Chatsworth Road. Pritchard responded that council policy and priorities drive the review process. He added that the council has tried to find a viable option for the Chatsworth Road toilets with community groups, but has not been successful to date.

Fleet Assets and Decarbonisation

The commission reviewed the council's work to decarbonise its fleet, in line with its pledge to reach net zero by 2040. Councillor Sarah Young, Cabinet Member for Climate Change, Environment and Transport, provided an overview of the council's climate action plan and its commitment to improving air quality and promoting active travel. Norman Harding, Fleet Manager, presented details on the council's fleet composition and decarbonisation initiatives.

The council's fleet includes a mix of vehicles, including dust carts, buses, and vans. As of the meeting, the council had 106 battery electric vehicles (BEV) in its fleet, with plans to electrify the entire fleet by 2030. In the meantime, 226 vehicles run on hydrogenated vegetable oil (HVO), which reduces the carbon footprint of diesel vehicles by 96%.

Harding explained that electric vehicles are more expensive than diesel vehicles, and the charging infrastructure is still developing. He added that the council is investing in charging stations and monitoring technological advancements.

The council commissioned UKPN[^6] to conduct a feasibility study at the Millfields depot to assess the energy requirements for transitioning to a fully electric fleet. The study found that the daily peak power requirement would increase significantly, requiring substantial infrastructure upgrades.

[6]: UK Power Networks (UKPN) distributes electricity across London, the South East and East of England.

During the discussion, Councillor Martins asked about the intention to move away from HVOs in the future and the potential impact of EVs on road infrastructure. Harding responded that the target is full electrification, but HVO remains the default fuel in the meantime. Councillor Young added that the council is constantly assessing the science and information surrounding decarbonisation, including the costs and benefits of different technologies.

Councillor Smyth asked about the sustainability of HVO, including the source of the vegetable oil and the transportation process. Harding assured the commission that the HVO used by the council contains no virgin palm oil and is sourced from sustainable sources.

Councillor Potter asked about options for expanding EV charging infrastructure, given the limitations of depot space. Harding explained that the council has a limited amount of depot space and is exploring options for expanding charging infrastructure. He added that the council is also working to address security concerns related to charging vehicles overnight.

Work Programme 2025/26

The commission discussed their work programme for the upcoming municipal year. Councillor Potter provided an overview of potential topics, including business support, skills development, transport strategy, circular economy, libraries, voluntary sector strategy, and the night-time economy.

Councillor Smyth suggested looking at the community energy fund and the rollout of solar panels across the borough. He also suggested combining this with a focus on the green skills centre. Councillor Martins suggested linking the night-time economy strategy with the Licensing and Security Commission to address issues such as anti-social behaviour.

Councillor Wrout suggested looking at the provision of A-levels at BSix College and the council's work in supporting town centres. Councillor Martins also suggested examining how civic pride is being embedded in economic development strategies.