Apologies for absence were received from:

·     Janet Fasan, Director Legal and Monitoring Officer (Richard Ward, Head of Contracts & Commercial was deputising)

·     Ann Sutcliffe, Corporate Director, Place (Ellie Kershaw, Director of Integrated Growth & Development was deputising).

Members are reminded to consider the categories of interest, identified in the Code of Conduct for Members to determine; whether they have an interest in any agenda item and any action they should take. For further details, see the attached note from the Monitoring Officer.

Members are also reminded to declare the nature of the interest at the earliest opportunity and the agenda item it relates to. Please note that ultimately it is the Members’ responsibility to identify any interests and also update their register of interests form as required by the Code.

If in doubt as to the nature of an interest, you are advised to seek advice prior to the meeting by contacting the Monitoring Officer or Democratic Services.

There were no declarations disclosable pecuniary interests.

The unrestricted minutes of the Cabinet meeting held on 14 December 2022 are presented for approval.

DECISION

1.    That the unrestricted minutes of the Cabinet meeting held on Wednesday 14 December 2022 be approved and signed by the Mayor as a correct record of proceedings.

The Mayor introduced his budget proposals (see item 6.1 and 6.2). There were no other announcements from the Mayor.

Chair of Overview and Scrutiny Committee (OSC) to report on any issues  raised by the OSC in relation to unrestricted business to be considered.

There were no Pre-decision Scrutiny Questions. The Cabinet noted that Scrutiny Committee will be reviewing the 2023-24 Budget Report on Monday 9 January 2023.

(Under provisions of Section 30, Rule 59 of the Constitution).

Nil items.

The item was considered alongside Agenda Item 6.2 (Mayor’s Foreword to the Council’s Budget Report) and the combined minute is presented at the minute for Item 6.2.

The Mayor asked that the budget foreword also make reference to:

proposal to reopen Watney Market Idea Store, investment in the community language service and residents hubs. It should also highlight the proposal to freeze Council Tax.

DECISION

The Mayor agreed to submit the budget and policy framework aspects of the report for review by the Overview and Scrutiny Committee.

1.      Propose a draft General Fund Revenue Funding Requirement of £446.257m for 2023-24 subject to remaining changes arising from the final Local Government Finance Settlement and any other necessary adjustments.

2.      Propose to freeze the Tower Hamlets element of Council Tax and to levy a 2% Adult Social Care precept for 2023-24.

3.      Propose that the Interim Corporate Director Resources uses £22.3m from reserves in 2023-24 to support the budget as set out in section 3.9.8 of the report given the shortfall emerging as part of the 2023-24 budget setting process.  

4.      Propose that the Interim Corporate Director Resources be authorised to make any changes required to the budget following receipt of the final Local Government Finance Settlement (LGFS) in consultation with the Mayor and Cabinet Member for Resources and the Cost of Living.

5.      Authorise the Corporate Director Resources to continue the Council’s participation in the 8 Authority Pool for Business Rates with seven other London Local Authorities for 2023-24, subject to due diligence.

6.      Note the latest draft position of the Council’s reserves, subject to final audit of the statements of accounts.

7.      Propose the HRA housing rent and service charge increases as outlined in section 3.11.  This includes increasing housing rents for existing tenanted properties by 7% for 2023-24 and for new build properties by CPI +1% for 2023-24 (as per paragraph 3.11.18 of the report).

8.      Propose that the National Schools Funding Formula (NSFF) adopted by Tower Hamlets originally in 2019-20 continues for 2023-24. The only changes included are increases to the factor values in line with the NSFF.

9.      Propose that the Minimum Funding Guarantee (the mechanism that guarantees schools a minimum uplift in per-pupil funding) is set as close to 0.5% as affordable, the maximum allowed after consideration for growth and factor changes in School allocations.

10.   Propose that the structure of the Early Years Funding Formula remains unchanged except that the two year old hourly rates will increase in line with the Early Years National Funding Formula.

11.   Note that the Local Council Tax Reduction Scheme will remain unchanged for 2023-24.

12.   Note the Equalities Implications as set out in Section 5 of the report.

Action by:

INTERIM CORPORATE DIRECTOR, RESOURCES (K. BARTLE)

(Director of Finance, Procurement and Audit (N. Visram)

The item was considered alongside Agenda Item 6.1 (Mayor’s Foreword to the Council’s Budget Report) and the combined minute is presented here.

The Mayor introduced both reports. He stated he was proud of the ambitious budget which he felt would re-direct the Council’s focus, reversing service cuts of the previous administration and reinvesting in public services, including:

·         Green investment initiatives, including electric waste vehicles and charging points, improvements in flat waste recycling and in low carbon fuel supply.

·         Youth service investment.

·         Universal Free school meals for both primary and secondary school.

·         Education maintenance allowance and university bursary scheme to promote access to education.

·         Investments to directly combat crime, including in providing more police officers, enforcement officers and CCTV cameras.

·         Improved Street cleansing.

·         Plans to deliver 1,000 homes for rent per year to reduce overcrowding and the damage it causes to health and wellbeing of residents.

·         Free home care for the vulnerable in the community.

·         Protecting and re-opening Idea Stores.

Councillor Saied Ahmed, Cabinet Member for Resources and the Cost of Living provided detail of the financial context behind the Mayor’s budget, including:

·         How national government decisions made financial planning acutely difficult for local authorities

·         Significant funding challenges including price rises, increasing interest rates and high fuel costs

·         Increasing pressures in adult social care meant the council has little option but to levy the 2% adult social care precept.

·         That despite the challenges above, the core rate of council tax, excluding the adult social care precept would not be increased

·         A portion of the Council’s reserves would be used to fund expenditure priorities, which would mean that residents would not suffer due to the economic crisis which is out of their control.

Kevin Bartle, Financial Consultant (and formerly Interim Corporate Director – Resources) and Nisar Visram, Director of Finance provided additional detail on the budget process and timetable. The Cabinet noted the budget would be considered by the Overview and Scrutiny Committee and any comments of the Scrutiny Committee would then be considered at the next Cabinet meeting. They noted that there would be additional detail in the budget report for the next Cabinet meeting, including detail of capital and growth and savings proposals. There may need to be further amendments at that second Cabinet meeting. Finally, a meeting of Council would agree the Budget and Council Tax for the authority.

Cabinet members highlighted some of the key investments of the Mayor’s proposed budget from their service areas. All indicated they were very proud of a balanced budget which would deliver manifesto pledges.

The Mayor thanked Cabinet members and officers for their hard work to deliver this budget in an extremely challenging circumstances. He proposed that the draft budget be submitted to Scrutiny. He proposed the recommendations as set out and it was:

RESOLVED to:

1.      Propose a draft General Fund Revenue Funding Requirement of £446.257m for 2023-24 subject to remaining changes arising from the final Local Government Finance Settlement and any other necessary adjustments.

2.      Propose to freeze the  ...  view the full minutes text for item 6.2

DECISION

1.    Approve the proposed changes to discretionary fees and charges as detailed in the appendices, subject to the conditions set out in Recommendation 4 of the report.

2.    Approve new discretionary fees and charges as detailed in the appendices, subject to the conditions set out in Recommendation 4 of the report.

3.    Approve the revised statutory fees and charges as detailed in Appendix 2 to the report.

4.    Note the Equalities Implications as set out in Section 4 and that, where a proposed fee or charge requires a full Equality Impact Analysis (EIA), this EIA will be undertaken prior to the introduction of the change to the respective fee or charge.

5.    Approve the continued delegation for amendments to fees and charges, including those to take account of the result of EIAs, to the relevant Corporate Director following consultation with the Lead Member and the Mayor.

6.    Approve the application of the changes in Street Trading fees and charges, to take effect from 1 April 2023.  Cabinet approved on 18 January 2022 to commence the consultation process in respect of Street Trading fees and charges, as detailed in the Fees and Charges 2022-23 report.  The consultation has subsequently been carried out in 2022.

Action by:

INTERIM CORPORATE DIRECTOR, RESOURCES (K. BARTLE)

(Director of Finance, Procurement and Audit (N. Visram)

Councillor Saied Ahmed, Cabinet Member for Resources and the Cost of Living introduced the report that detailed proposed changes to fees and charges across the Council for the financial year 2023-24. Councillor Ahmed described the differences between statutory and discretionary charges and the approach taken to reviewing each type. He explained that in determining changes to fees and charges, benchmarking exercises with other local authorities had been conducted and the impact of general economic factors including Covid and the cost of living crisis had been taken into account.

He also highlighted that:

·         the report introduced free parking concessions for one hour at specific locations around markets within the borough; and

·         street trading charges would not be increased any further for next year.

Finally, Councillor Ahmed explained the interrelationship between this report and the MTFS and Budget report previously considered.

Cabinet members indicated their support of the proposed changes to fees and charges.

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

RESOLVED to:

1.    Approve the proposed changes to discretionary fees and charges as detailed in the appendices, subject to the conditions set out in Recommendation 4 of the report.

2.    Approve new discretionary fees and charges as detailed in the appendices, subject to the conditions set out in Recommendation 4 of the report.

3.    Approve the revised statutory fees and charges as detailed in Appendix 2 to the report.

4.    Note the Equalities Implications as set out in Section 4 of the report and that, where a proposed fee or charge requires a full Equality Impact Analysis (EIA), this EIA will be undertaken prior to the introduction of the change to the respective fee or charge.

5.    Approve the continued delegation for amendments to fees and charges, including those to take account of the result of EIAs, to the relevant Corporate Director following consultation with the Lead Member and the Mayor.

6.    Approve the application of the changes in Street Trading fees and charges, to take effect from 1 April 2023.  Cabinet approved on 18 January 2022 to commence the consultation process in respect of Street Trading fees and charges, as detailed in the Fees and Charges 2022-23 report.  The consultation has subsequently been carried out in 2022.

Nil items.

Should the Mayor in Cabinet consider it necessary, it is recommended that the following motion be adopted to allow consideration of any exempt/restricted documents.

“That, under the provisions of Section 100A of the Local Government Act, 1972 as amended by the Local Government (Access to Information) Act, 1985, the Press and Public be excluded from the remainder of the meeting for the consideration of the Section Two business on the grounds that it contains information defined as Exempt in Part 1 of Schedule 12A to the Local Government, Act 1972”.

EXEMPT/CONFIDENTIAL SECTION (PINK)

Nil items.

The exempt / confidential minutes of the Cabinet meeting held on xxxxxx are presented for approval.

Nil items.

Chair of Overview and Scrutiny Committee (OSC) to report on any issues  raised by the OSC in relation to exempt/confidential business to be considered.

Nil items.

(Under provisions of Section 30, Rule 59 of the Constitution).

Nil items.

Nil items.