There were no apologies for absence.

None were declared.

None were declared.

The unrestricted minutes of the Cabinet meeting held on Wednesday 9 January 2013 are presented for information.

The unrestricted minutes of the ordinary meeting of the Cabinet held on 9 January 2013 were presented for information.

The unrestricted minutes of the ordinary meeting of the Cabinet held on 9 January 2013 were presented for information.

To receive any petitions.

No petitions were received.

No petitions were received.

Overview and Scrutiny response to the initial draft budget proposals.

Pre decision scrutiny questions and discussion on Agenda Item 10.2 (General Fund Capital and Revenue Budgets and Medium Term Financial Plan 2013/14 – 2015/16 were tabled and noted.

Pre decision scrutiny questions and discussion on Agenda Item 10.2 (General Fund Capital and Revenue Budgets and Medium Term Financial Plan 2013/14 – 2015/16 were tabled and noted.

Councillor Ann Jackson, Chair of the Overview and Scrutiny Committee, addressed Cabinet and highlighted some specific issues that had been raised during the Overview and Scrutiny Committee discussions on the budget including:

·         That in light of future financial challenges, whether the Council should be holding on to more of its existing savings in Adult Health and Wellbeing to cover later increases in demand for services.

·         Considering the low take-up levels, whether funding the Mayor’s Educational Grant was the most appropriate use of resources compared with other needs within education.

·         Disappointment that the Chief Executive’s department’s savings and growth bids had not been set out fully in the budget proposals.

·         General questions over whether growth bids and projects such as a potential new Town Hall were appropriate in the current financial circumstances.

The Mayor thanked Councillor Ann Jackson for the work the Overview and Scrutiny Committee had undertaken in scrutinising the budget proposals.

Nil items.

The Clerk advised that no requests had been received by the Assistant Chief Executive (Legal Services) to ‘call-in’ for further consideration, by the Overview and Scrutiny Committee, any provisional decisions taken by the Mayor in Cabinet, at the Cabinet meeting held on 9 January 2013.

Councillor Rabina Khan, Cabinet Member for Housing, introduced the report stating that it was an excellent proposal. She responded to a number of questions and concerns from existing residents stating that she had examined all the options with officers and was satisfied that the existing proposal was the most appropriate for the site. In particular she highlighted the priority the Council was placing in increasing the number of family sized houses available to Council tenants.

Responding to questions it was explained that officers would work with all existing residents to ensure they were given priority status and would all be rehoused.

During discussion it was noted that support for single vulnerable adults was also very important and that there may be benefit in the Council exploring new ideas to help them support each other in grouped accommodation.

The Mayor welcomed the report, whilst acknowledging the concerns of existing residents. He confirmed that they would be given good support by officers and priority status to ensure they were rehoused.

Resolved

1.         To agree to Option 1, outlined at section 6 below, and authorise the investment of council resources in refurbishing eleven properties (numbers 9, 11, 46, 48, 50, 52, 58, 62 and 64 Bruce Road E3, 93 Old Ford Road E3 and 34 Mount Terrace E1) and bringing them back into use as council tenancies to be managed by THH.  The twelfth property is already in the process of refurbishment, as detailed at paragraph 5.5.       

2.         To agree to award all eligible TUSH members (as outlined at paragraph 6.8) resident in these properties and registered on the council’s housing waiting list additional management priority points to enable them to bid for suitable replacement housing in line with the Council’s lettings policy.

3.         To approve the allocation of capital resources to accomplish the refurbishment of the eleven houses, and adopt a capital estimate of £1.7 million to enable the scheme to be included within the capital programme.

4.         To delegate further decisions on the awarding of a contract to refurbish the properties and the options for carrying out additional works to one of the properties (see details of 34 Mount Terrace at paragraph 6.6) to the Corporate Director of Development & Renewal after consultation with the Assistant Chief Executive and  the Mayor.

Councillor Rabina Khan, Cabinet Member for Housing, introduced the report. She stated that Councillor Kabir Ahmed should be the non-executive Councillor appointed rather than Councillor Rofique Ahmed as stated in the report.

The Mayor agreed the alternative membership proposed and agreed the recommendations in the report.

Resolved

1.    To agree the revised constitution for the LHC Appendix 1.

2.    To appoint two Members, one Executive (Councillor Rabina Khan) and one non-Executive (Councillor Kabir Ahmed) to represent the Council on the joint Committee in line with the Council’s external appointment procedures.

3.    To authorise the Corporate Director of Development and Renewal in consultation with the Mayor to agree any future  alterations to the Constitution for the London Housing Consortium 

Nil items.

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[Note – Agenda Items 10.1 (Housing Revenue Account), 10.2 (General Fund Capital and Revenue Budgets) and 10.3 (Treasury Management Strategy Statement) were considered together and the combined minute is presented here. The approved recommendations are listed under the relevant items]

Councillor Alibor Choudhury, Cabinet Member for Resources, introduced the reports. He highlighted the challenges the Council faced in light of the significant funding cuts being made by central government. In particular he highlighted a number of points including:

·         An additional report in relation to item 10.2 (General Fund and Capital Budgets) reporting on the final government grant allocations and that officers had done well to predict the final settlement.

·         That the 3.2% reduction in funding would feel more like 8% once population growth and inflation were accounted for.

·         Savings proposals were listed in the report to cover this reduction and action was also proposed to account for earlier savings proposals that had not been deliverable. These included cuts to back office functions, supplies, senior management, travel, ICT and generating more income.

·         It was important to try and mitigate the impact of cuts on local people and some amendments were to be proposed to mitigate the impact in some important areas.

·         There was some new funding such as a higher than expected public health grant.

Cabinet Members and other Councillors then rose to propose amendments to the budget proposals. These were tabled as a paper to Cabinet and included amendments on the following topics:

·         Additional THEOs (Tower Hamlets Enforcement Officers) and more CCTV coverage.

·         Cycling improvements.

·         Tackling potholes.

·         Exploring provision of a Multi-faith burial ground.

·         Free school meals for Reception and Year 1 pupils.

·         An additional £1 million in capital grants for the Faith Buildings scheme.

There then followed a discussion on the above amendments and the overall budget. The Mayor thanked all those who had contributed to the discussion including Overview and Scrutiny Committee Members and thanked officers for their work in developing the proposals. He agreed the recommendations to each of the reports, amended where necessary.

Resolved

Revenue

1.    To approve the draft 2013/14 Housing Revenue Account budget as set out in Appendix 1.

2.    To approve the draft 2013/14 Management Fee payable to Tower Hamlets Homes (THH) of £32.429 million as set out in Table 3 in section 9.2.

3.    Subject to 2. above, note that under the Management Agreement between the Council and THH, THH will manage delegated income budgets of £84.2 million and delegated expenditure budgets of £25.1 million on behalf of the Council in 2013/14.

4.    To note the HRA Medium Term Financial Plan (2013-16) outlined in Appendix 2.

Capital

5.    To adopt a capital estimate of £980,000 for the award of Disabled Facilities Grants, as outlined in paragraph 12.1, subject to funding being confirmed by the DCLG and the Department of Health.

6.    To adopt a capital estimate of £250,000 in respect of Private Sector Improvement Grants, including Empty Property Grants, for 2013-14, to be financed from ring-fenced resources received from the East London  ...  view the full minutes text for item 10.1

[Note – Agenda Items 10.1 (Housing Revenue Account), 10.2 (General Fund Capital and Revenue Budgets) and 10.3 (Treasury Management Strategy Statement) were considered together and the combined minute is presented  under Agenda Item 10.1.]

The Mayor accepted the Reasons for Urgency for the Supplementary Report as stated in the report. Namely that:

The information the subject of this report was only made available on 4 February 2013. It is essential that this information be considered by the Mayor in Cabinet on 13 February 2013 in order to make a decision about the budget which is to go forward for consideration by full council.

Resolved

1.         To agree that a General Fund Revenue Budget of £297.806m and a Council Tax (Band D) of £885.52 for 2013-14 be referred to budget council for consideration.

2.         To note the following matters -

a.    Budget Consultation

The summary provided of the budget consultation, which includes the comments and recommendations of the overview and scrutiny committee.

b.    Funding

The funding available for 2013-14 and the indications and forecasts for future years (section 8) and note the introduction of the new local government funding system (Appendix 2).

c.    Base Budget 2013-14

·         The Base Budget for 2013-14 as £293.865m as detailed in Appendix 1.2.

d.    Growth and Inflation

·         The risks identified from potential inflation and committed growth arising in 2013-14 and future years and as set out in Section 9 and in Appendix 3.

e.   General Fund Revenue Budget and Medium Term Financial Plan 2013-14 to 2015-16

The initial budget proposal and Council Tax for 2013-14 together with the Medium Term Financial Plan set out in Appendix 1 and the savings targets arising.

f.     Savings

Savings items proposed to be included in budgets for 2013-14 and future years set out in Section 10 and in Appendices 4.

g.    Mayors Priorities

Initiatives to be included in the budgets for 2013-14 and 2014-15 set out in Section 10.3 and in Appendix 5.

h.    Capital Programme

The capital programme to 2014-15, including the proposed revisions to the current programme as set out in section 14 and detailed in Appendix 9.

i.      Dedicated Schools Grant

The position with regard to Dedicated Schools Grant as set out in section 12 and Appendix 7.

j.      Housing Revenue Account

The position with regard to the Housing Revenue Account as set out in section 13 and Appendix 8.

k.   Financial Risks: Reserves and Contingencies

Advice on strategic budget risks and opportunities as set out in section 11 and Appendices 6.1, 6.2 and 6.3.

l.     Reserves and Balances

The position in relation to reserves as set out in the report and further detailed in Appendices 6.1 and 6.3, and officers’ advice on the strategy for general reserves at 8.40.

3.         To note the advice of the chief financial officer in relation to resources available to fund one-off priorities in the next two financial years.

4.         To agree to utilise £1m of capital receipts to part fund the Faith Buildings initiative announced at Cabinet on 3^{rd  ...  view the full minutes text for item 10.2}

[Note – Agenda Items 10.1 (Housing Revenue Account), 10.2 (General Fund Capital and Revenue Budgets) and 10.3 (Treasury Management Strategy Statement) were considered together and the combined minute is presented  under Agenda Item 10.1.]

Resolved

1. To recommend that Full Council adopt:
   
   

1.1.        The Treasury Management Strategy Statement set out in sections 6-11 of this report.

1.2.        The Annual Investment Strategy set out in section 12 of this report.

1.3.        The Minimum Revenue Provision Policy Statement set out in section 13 of this report, which officers involved in treasury management must then follow.

2. To delegate to the Interim Corporate Director of Resources, after consultation with the Lead Member for Resources, authority to vary the figures in this report to reflect any decisions made in relation to the Capital Programme prior to submission to Budget Council.

1.    To consider the contract summary at  Appendix 1, and identify those contracts about which specific reports – relating either to contracting strategy or to contract award – should be brought before Cabinet prior to contract award by the appropriate Corporate Director  for the service area; and

2.    To authorise the relevant Corporate Director who holds the budget for the service area to award the contract or contracts  in consultation with the Assistant Chief Executive (Legal Services),

3.    To authorise the Assistant Chief Executive (Legal Services) to  execute  all necessary contract documents in respect of the awards of contracts referred to at recommendation 2 above.

Action by:

INTERIM CORPORATE DIRECTOR RESOURCES (C. HOLME)

(Service Head Procurement and Corporate Programmes, H. Sharkey)

Councillor Alibor Choudhury, Cabinet Member for Finance, introduced the report.

The Mayor agreed the recommendations as set out in the report.

Resolved

1.    To consider the contract summary at  Appendix 1, and agree that all the contracts be taken forward.

2.    To authorise the relevant Corporate Director who holds the budget for the service area to award the contract or contracts  in consultation with the Assistant Chief Executive (Legal Services).

3.    To authorise the Assistant Chief Executive (Legal Services) to  execute  all necessary contract documents in respect of the awards of contracts referred to at recommendation 1 above.

Nil items.

Nil items.

1.    To note the exercise of Corporate Directors’ discretions as set out in Appendix 1.

The Mayor agreed the recommendations as set out in the report.

Resolved

1.    To note the exercise of Corporate Directors’ discretions as set out in Appendix 1.

That pursuant to regulation 21(1)(b) of the Local Authorities (Executive Arrangements) (Access to Information) (England) Regulations 2000, the press and public be excluded from the remainder of the meeting:

(a)  As it was likely, in view of the nature of the business to be transacted in Section Two of the agenda, that if members of the public were present during consideration of this business there would be disclosure of exempt information.

·         Exempt information is defined in section 100I and, by reference, Schedule 12A of the Local Government Act 1972 (“the 1972 Act”). To be exempt, information must fall within one of the categories listed in paragraphs 1 to 7 of Schedule 12A, must not fall within one of the excluded categories in paragraphs 8 and 9 and the public interest in maintaining the exemption must outweigh the public interest in disclosing the information.

o   Agenda item 14 “Exempt/ Confidential Minutes” – contained information relating to the financial or business affairs of any particular person (including the authority holding that information). In particular information relating to the financial affairs

o   Agenda item 16.1. “Asset Rationalisation Review (Depots and Town Hall)” contained information relating to the financial or business affairs of any particular person (including the authority holding that information). In particular information relating to the financial affairs of the Council.

(b)  As although there is a public interest favouring public access to local authority meetings, in this case the Cabinet concluded that given the information contained in:

o   Agenda item 14 “Exempt/ Confidential Minutes” – contained information relating to the financial or business affairs of any particular person (including the authority holding that information). In particular information relating to the financial affairs

o   Agenda item 16.1. “Asset Rationalisation Review (Depots and Town Hall)” contained information relating to the financial or business affairs of any particular person (including the authority holding that information). In particular information relating to the financial affairs of the Council.

that the public interest in maintaining the exemption on the information outweighed the public interest in disclosing it.

Resolved

That pursuant to regulation 21(1)(b) of the Local Authorities (Executive Arrangements) (Access to Information) (England) Regulations 2000, the press and public be excluded from the remainder of the meeting:

(a)  As it was likely, in view of the nature of the business to be transacted in Section Two of the agenda, that if members of the public were present during consideration of this business there would be disclosure of exempt information.

·         Exempt information is defined in section 100I and, by reference, Schedule 12A of the Local Government Act 1972 (“the 1972 Act”). To be exempt, information must fall within one of the categories listed in paragraphs 1 to 7 of Schedule 12A, must not fall within one of the excluded categories in paragraphs 8 and 9 and the public interest in maintaining the exemption must outweigh the public interest in disclosing the information.

o   Agenda item 14 “Exempt/ Confidential Minutes” – contained information relating to the financial or business affairs of any particular person (including the authority holding that information). In particular information relating to the financial affairs

o   Agenda item 16.1. “Asset Rationalisation Review (Depots and Town Hall)” contained information relating to the financial or business affairs of any particular person (including the authority holding that information). In particular information relating to the financial affairs of the Council.

(b)  As although there is a public interest favouring public access to local authority meetings, in this case the Cabinet concluded that given the information contained in:

o   Agenda item 14 “Exempt/ Confidential Minutes” – contained information relating to the financial or business affairs of any particular person (including the authority holding that information). In particular information relating to the financial affairs

o   Agenda item 16.1. “Asset Rationalisation Review (Depots and Town Hall)” contained information relating to the financial or business affairs of any particular person (including the authority holding that information). In particular information relating to the financial affairs of the Council.

that the public interest in maintaining the exemption on the information outweighed the public interest in disclosing it.

The exempt / confidential minutes of the Cabinet meeting held on 9 January 2013 are presented for information.

The Exempt/Part II minutes of the ordinary meeting of the Cabinet held on 9 January 2013 were tabled for information.

The Exempt/Part II minutes of the ordinary meeting of the Cabinet held on 9 January 2013 were tabled for information.

Nil items.

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The Mayor considered the report and subject to minor amendments agreed its recommendations.

The Mayor considered the report and subject to minor amendments agreed its recommendations.

Nil items.

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