Agenda and decisions

Apologies for absence were received on behalf of Councillors Moema, and Williams.

NOTED

The Chair will consider the admission of any late items of Urgent Business. (Late items of Urgent Business will be considered under the agenda item where they appear. New items of Urgent Business will be dealt with under Item 19 below. New items of exempt business will be dealt with at Item 22 below).

There were no items of urgent business.

NOTED

A Member with a disclosable pecuniary interest or a prejudicial interest in a matter who attends a meeting of the authority at which the matter is considered:

(i) must disclose the interest at the start of the meeting or when the interest becomes apparent, and

(ii) may not participate in any discussion or vote on the matter and must withdraw from the meeting room.

A Member who discloses at a meeting a disclosable pecuniary interest which is not registered in the Register of Members’ Interests or the subject of a pending notification must notify the Monitoring Officer of the interest within 28 days of the disclosure.

Disclosable pecuniary interests, personal interests and prejudicial interests are defined at Paragraphs 8.1-15.2 of Section Two of Part 5 of the Constitution  and Appendix A of the Members’ Code of Conduct.

There were no declarations of interests.

NOTED

On occasions part of the Cabinet meeting will be held in private and will not be open to the public if an item is being considered that is likely to lead to the disclosure of exempt or confidential information. In accordance with the Local Authorities (Executive Arrangements) (Meetings and Access to Information) (England) Regulations 2012 (the “Regulations”), members of the public can make representations about why that part of the meeting should be open to the public.

This agenda contains exempt items as set out at Item 20 : Exclusion of the Press and Public.  No representations with regard to these have been received.

This is the formal 5 clear day notice under the Regulations to confirm that this Cabinet meeting will be partly held in private for the reasons set out in this Agenda.

There were no representations received.

NOTED

The Mayor advised he had received a public question from Andrew Elliot – Co-Director of The Garden of Earthly Delights, in respect of Agenda Item15 -  Hackney Central station and town centre regeneration - Key Decision No. NH Q52.

In accordance with the provisions of the constitution, although the question was out of time he had the power accept questions without notice, and on this occasion he had been minded to accept it.

The Mayor advised however, that Mr Elliott was unable to now attend the meeting due to unforeseen circumstances and therefore, in acknowledging receipt of the question, a written answer would be supplied.

The Mayor advisedthat there were no other questions, deputations, or petitions.

NOTED

To agree the unrestricted minutes of the previous meeting of Cabinet held on 24 February 2020.

RESOLVED

That the unrestricted minutes of the meeting of Cabinet held on 24 February 2020 be confirmed as an accurate record of the proceedings.

To receive the unrestricted minutes of the Cabinet Procurement Committee (CPC) held on 10 February 2020 - for noting only.

RESOLVED

That the unrestricted minutes of the meeting of Cabinet Procurement Committee held on 10 February 2020 be received and noted.

This report updates Members on the current position of the Capital Programme and seeks spending and resource approval as required to enable officers to proceed with the delivery of those schemes as set out in section 9 of the report.

RESOLVED

i.  That the schemes for Children, Adults and Community Health as set out in section 9.2 of the report be approved as follows:

  Schools Asset Management Programme (AMP) 2020/21: Virement and spend approval of £3,500k in 2020/21 to is requested to fund the continuation of the annual maintenance programme across a number of primary school assets.

Children’ Centres Asset Management Programme (AMP) 2020/21: Virement and spend approval of £400k in 2020/21 is requested to fund the rolling programme of asbestos surveys and the remedial works to a number of the Council’s maintained schools and children’s centres. 

ii.    that the schemes for Neighbourhood and Housing (Non-housing) as set out in section 9.3 of the report be approved as follows:

  Developing Borough Infrastructure: Spend approval of £300k (£150k in 2019/20 and £150k in 2020/21) is requested to fund the Council’s development infrastructure works.

Road Safety Programme: Spend approval of £300k in 2020/21 is requested to fund the continuing road safety works on the borough’s roads.

Local Implementation Plan (LiP) TfL Funded - Corridors, Central London Grid, Quietways cycle Route, Neighbourhoods of the Future, Liveable Neighbourhoods and Mayors Air Quality Fund: Resource and spend approval of £940k in 2019/20, spend approval of £145k in 2019/20  and spend approval of £1,034k in 2020/21 is requested in order to facilitate the delivery of the TfL funded schemes to implement measures to reduce road traffic accidents and fund projects to encourage sustainable transport within the borough.

REASONS FOR DECISION

The decisions required are necessary in order that the schemes within the Council’s approved Capital programme can be delivered as set out in this report.

In most cases, resources have already been allocated to the schemes as part of the budget setting exercise but spending approval is required in order for the scheme to proceed. Where however resources have not previously been allocated, resource approval is requested in this report.

DETAILS OF ALTERNATIVE OPTIONS CONSIDERED AND REJECTED

None.

This is the eighth Overall Financial Position (OFP) report for 2019/20 and is based on detailed January 2020 provisional outturn monitoring data from directorates, with a forecasting overspend of £6,953k at year end - an increase of £522k since December 2019.

RESOLVED

i.  That the updated overall financial position for January 2020, covering the General Fund and the HRA, together with the earmarking by the Group Director of Finance and Corporate Resources of any underspend to support funding of future cost pressures and the funding of the Capital Programme, be noted;

ii.  that the acquisition of a new 25-year lease at a peppercorn rent for Building 5, Plough Yard in the area at Principal Place as described in 2.3 of the report, be authorised;

iii.  that authority be delegated to the Group Director of Finance and Corporate Resources to acquire a lease of 25 years in respect of Building 5, Plough Yard,  and agree all other terms of the lease provided that the requirements of S120 Local Government Act 1972 will be met; and

iv.  that the Director of Legal & Governance be authorised to prepare, agree, settle and sign the necessary legal documentation to effect the proposed acquisition and to enter into any other ancillary legal documentation required to complete the proposed transaction.

REASONS FOR DECISION

To facilitate financial management and control of the Council's finances and to approve the property acquisition

CHILDREN, ADULT SOCIAL CARE AND COMMUNITY HEALTH (CACH)

The CACH directorate is forecasting an overspend of £6,148k after the application of reserves and drawdown - an increase of £350k from the previous month.

Children & Families Service

The Children & Families Service (CFS) is forecasting a £2,056k overspend against budget after the application of reserves and grants. The draw down from reserves includes:

?  £2,300k from the Commissioning Reserve, set up to meet the cost of placements where these exceed the current budget.

?  £1,300k for additional staffing required to address a combination of increased demand across the service and management response to the Ofsted inspection.

?  £300k is drawn down to offset pressures in relation to the increase in young people currently held on remand. 

The Children and Families Service was inspected by Ofsted in November, and the service was rated as requiring improvement. A Children’s Leadership and Development Board has been set up, which is accountable to a Children Members Oversight Board, to ensure that all service areas within the department are delivering to a consistently high standard for all children and families and that the recommendations arising from the Ofsted inspection are addressed. A resourcing plan with the objective of responding to increased demand in the service and addressing these recommendations is currently being developed.

The sustained pressure on CFS budgets is a position that is not unique to Hackney, as shown by the results of a survey on Children’s Social Care spend carried out jointly by the Society of London Treasurers (SLT) and the Association of Directors of Children’s Services (ADCS). The graph below shows how Hackney’s year-end position for 2018/19 (before the use of reserves) compared to other London boroughs for Children’s Social Care.

The main budget pressures in CFS are in relation to looked after children (LAC) placements within Corporate Parenting and staffing in several areas across  ...  view the full decision text for item 9.

This report seek’s Cabinet’s  approval to the new Homeless Strategy 2019-22.

RESOLVED

That approval be given to the new Homeless Strategy 2019-22.

REASONS FOR DECISION

The Homelessness Act 2002 places an overriding statutory duty on all housing authorities to review homelessness trends in their area on a 5 yearly basis, and produce an overriding strategic homelessness strategy which reflects the results of that review.

Statutory guidance issued by the Ministry of Housing, Communities and Local Government (MHCLG) requires Housing Authorities to ensure that strategies are compliant with and take into account the duties introduced by Homelessness Reduction Act in 2018.

Additionally, In 2018 Central Government published it’s Rough Sleeping Strategy, which requires Councils to update their Homelessness and Rough Sleeping strategies to include a focus on Rough Sleeping.

The Council’s current homelessness strategy is now out of date.  Given significant changes in the local housing market, and the introduction of new legislation and duties under the Homelessness Reduction Act it is necessary for the Council to produce a new Homelessness Strategy. This strategy reflects the latest trends in homelessness, follows best practice and is compliant with current legislation.

DETAILS OF ALTERNATIVE OPTIONS CONSIDERED AND REJECTED

The publication of a homelessness strategy is a statutory requirement as set out by the Homelessness Act 2002 which has been subsequently reinforced by government guidance. All Housing authorities are required under Section 1(4) of the Homelessness Act to publish a new homelessness strategy, based on the results of a further homelessness review, within the period of 5 years beginning with the day on which their last homelessness strategy was published.

Not having an up to date strategy will make the Council non-compliant with legislation and would place the authority at risk of government action, which will have an adverse impact on any future funding.

Given the current pressures placed on Council services as a  consequence of the level of homelessness in the borough, an up to date homelessness strategy that includes a strategic framework that reflects the current market and operating climate is essential if the Council is to respond effectively.

A basic refresh of the existing strategy was considered, but given the significant changes in the housing landscape and extra duties introduced by the Homelessness Reduction Act a new strategy is more appropriate.

By not introducing a new Homelessness Strategy the Council is in danger of being less effective in both tackling the current levels of homelessness and rough sleeping and in preventing homelessness in the future.

This report seeks Cabinet’s approval to the Corporate Debt Collection Policy (and the Vulnerable Person’s Debt Policy), which forms part of the Corporate Debt Collection Policy.

RESOLVED

i.  That approval be given to the Corporate Debt Collection Policy (and the Vulnerable Person’s Debt Policy, which forms part of the Corporate Debt Collection Policy), to enable Hackney to have effective strategies in place to support customers who were experiencing financial difficulty, and also allow Hackney to achieve fairer customer outcomes, better customer engagement and sustainable payments; and

ii.  That authority be delegated to the Group Director of Finance and Corporate Resources to make minor amendments to the Corporate Debt Collection Policy and associated policies.

REASONS FOR DECISION

Significant progress has been made to maintain Hackney as a high performing borough but as outlined in Hackney’s corporate plan 2018-2022 there is still more to do. “After eight years of austerity, the financial challenge to local government remains acute. Hackney will have lost £140 million from our annual Government grant by 2019/20, around 45%, and we must find further savings. Inequality is widening in the borough, and welfare reform is increasing that challenge and driving demand on our services. As a Council, maintaining strong, cohesive, healthy communities in the face of that inequality, is one of our greatest and most difficult tasks.” 

The introduction of Universal Credit to Hackney in October 2018 is the biggest  change in welfare reform in the last 30 years; it replaces six different benefits with a single monthly payment.  There are challenges caused by a single monthly payment and the way it is paid, with some aspects of Universal Credit causing or exacerbating personal debt problems. There is a minimum five week wait before receiving the first payment, some customers now have to meet the shortfall in rent payments and many more are worse off financially. Consequently, the number of people reporting debt problems is on the increase. Universal Credit will not be fully rolled out in Hackney until 2024 and, while the Council is investing in helping people prepare, it is likely that the number of people affected by debt issues will increase as this happens.

Research from the Money Advice Service and Californian Analysis Centre Inc. has indicated that just over a fifth of adult residents in Hackney are living with problem debt i.e. those likely to find monthly payments a ‘heavy burden’ and/or those missing more than three bill payments within a six-month period.  Also the English Indices of Deprivation 2019 shows Hackney to be the 7th in the most deprived local authorities based on rank (the average level of deprivation across the borough based on the population weighted ranks of all neighbourhoods). Hackney’s Community Strategy aims to address  poverty and income inequality and looks to support people to resolve problems before they become unmanageable.

Hackney has invested in advice and support services for residents who are struggling financially or are in debt, but there needs to be a change in the approach to how income is collected, so that advice and support are offered in the early stages of the debt recovery processes. We also want to reduce our reliance  ...  view the full decision text for item 11.

This report seeks  Cabinet’s approval  to allow the borough to become a memberof Capital Letters (London) Ltd. Capital Letters (London) Ltd. 

RESOLVED

 i.  That the £38 million over three years committed by the Ministry of Housing, Communities and Local Government (MHCLG) specifically for pan-London collaboration on the procurement of accommodation for homeless households be noted;

ii.  That approval be given to becoming a Member of and joining Capital Letters (London) Ltd, a Company Limited by Guarantee established by the London boroughs, which in turn would procure or lease accommodation for the benefit of those London boroughs that become members of the company; and

iii.  Note Capital Letters’ governance structures including the Borough Representative Body on which all boroughs are represented and the Board of Directors whose appointment is made in accordance with the Directors Appointment Policy.

REASONS FOR DECISION

The decisions recommended are required to join the company and participate in the collaborative procurement approach and to access the MHCLG funding.

The estimated aggregate financial benefit of the proposals to London Boroughs are significant plus potential savings on changing how placements are made and reduced repeat homelessness through tenancy sustainment. It will also build on the effective work through the Inter Borough Accommodation Agreement (IBAA) which has led to reduced spending through rate sharing and the application of a cap on rates paid for certain accommodation. Capital Letters is required to work within this system, and provides further opportunities to rationalise and secure efficiencies in the procurement of accommodation for homeless households.

Benefits to Hackney of joining Capital Letters now that it is operational:

Capital Letters has been set up in a number of phases, meaning that not all boroughs were required to join first. There are a number of reasons why it would be advantageous for Hackney to be part of the second wave of boroughs which are anticipated to start operations in April 2020 or shortly thereafter.

Capital Letters is no longer a leap of faith but a proof of concept. The first phase boroughs have worked closely with the Capital Letters team to obtain agreement on key documents such as the Secondment Agreement, Service Level Agreement and incentive packages, and to develop working processes and procedures. As a result, Capital Letters is fully operational, with all processes and procedures in place and a functioning IT system which means the second phase boroughs will benefit from the opportunity immediately on joining.

Although the grant for incentive payments reduces in year two, because the operational arrangements are all in place, the second wave boroughs are likely to achieve similar levels of grant to top slice these payments due to the higher numbers of properties that will be procured during the year.

Boroughs who do not join Capital Letters will still have properties procured by Capital Letters in their area. Although Capital Letters will abide by the agreed IBAA rates, there is nevertheless a significant risk that landlords and agents will prefer to work with Capital Letters than within individual boroughs because of the profile it  is developing, and because of the more streamlined ability to let properties across London with  ...  view the full decision text for item 12.

This report seeks Cabinet’s approval to the three Hackney Housing Companies’ business plans as attached at Appendices 1 to 3, and to note the annual report of the Directors at Appendix 4, of the report.

RESOLVED

i.  That approval be given to the three Hackney Housing Companies’ business plans as attached at Appendices 1 to 3 to the report, which will be adopted by the respective companies subject to Resolution by the Companies’ Board of Directors; and

ii.  that the Hackney Housing Company’s annual Director’s Report appended at Appendix 4 of the report, be noted.

 REASONS FOR DECISION

The business plans describe the parent and subsidiary companies' business,  covering their mission, governance, products and services, market, marketing strategy, operations financial forecast, risk mitigation and exit strategy. 

In adopting the proposed business plans, the group of companies will assist the shareholder in delivering on commitments to make available to local residents: 1) an additional affordable accommodation tenure for households unable to access the private market but whose means exclude them from being awarded a Council home with a social rent; 2) high quality and well managed private rented sector accommodation.

The Council is the sole company shareholder and the business plans developed and proposed by the Directors should be based on the shareholders objectives and priorities.

DETAILS OF ALTERNATIVE OPTIONS CONSIDERED AND REJECTED

A requirement of the housing company is that business plans are taken to Cabinet to be approved as Cabinet exercises the main shareholder functions.

The Hackney Housing Company and its subsidiaries could not operate commercially or strategically  without business plans.

This report outlines to Cabinet how, by acquiring former Right-to-Buy properties and converting them back into use as affordable homes, additional affordable housing can be delivered to help meet outstanding housing need in Hackney.

RESOLVED

i.  That authority be given to the principle of purchasing former Right-to-Buy properties including those owned by Housing Associations, to support the increased supply of affordable housing in the borough, and that such purchases to be subject to the Group Director of Finance being satisfied that it was the most cost effective solution to support the delivery of affordable homes in the borough;

ii.  that a spend of up to £10m per annum from existing affordable housing budgets for the purchase of former Right-to-Buy properties be authorised, including those owned by Housing Associations, to support the increased supply of affordable housing in the borough;

iii.  that the Director of Corporate Property be delegated authority, in consultation with the Group Director Neighbourhoods and Housing on behalf of the Council, to negotiate final terms and conditions on the purchases as referred to in i. and ii. above including price and purchase of the properties; and

iv.  that the Director of Legal and Governance be authorised  to prepare, agree, settle and sign the necessary legal documentation to effect the proposals contained in this report and to enter into any other ancillary legal documentation as required.

REASONS FOR DECISION

The reasons for providing this report and the recommendations set out within it are;

?  To approve the principle of purchasing open market and former Right-to-Buy properties as outlined in the recommendations above in order to support the delivery of homes for rent in the borough.

?  To give the Council additional flexibility, by granting delegated authority the Group Director of Finance, to acquire homes that can support the delivery of affordable housing in the borough.

DETAILS OF ALTERNATIVE OPTIONS CONSIDERED AND REJECTED

The Council could do nothing and the RTB properties would be sold on the open market.This would result in the delivery of fewer additional homes for social rent in the borough.

In addition to this, the continuing use of more expensive nightly paid temporary accommodation by the Housing Needs Service adds further to the forecast overspend  on temporary accommodation. Purchase of these properties would contribute towards provision of less temporary accommodation overall.

This report sets out for Cabinet a solution, brought forward by the Council in partnership with Network Rail and Transport for London (TfL), to alleviate the current overcrowding and congestion issues at Hackney Central station by utilising Council owned land at 231-237 Graham Road to provide a temporary second entrance to the station.

RESOLVED

i.  That approval be given to the granting of a lease in excess of seven years on the land at 231 - 237 Graham Road shown edged in red on the plan attached at Appendix 1 of the report at a value less than the best consideration that could reasonably be obtained for the social, environmental and economic reasons expressed in the report, and that the lease would be subject to planning consent being obtained for the new entrance on Graham Road and funding for the scheme being secured;

ii.  That authority be delegated to the Group Director of Finance and Corporate Resources to agree the commercial terms for the lease;

iii.  That authority be delegated to the Director of Legal and Governance to settle and sign the lease and any other legal documentation relevant to complete the transaction;

iv.  That authority be delegated to the Director of Legal and Governance to enter into a Memorandum of Understanding with Transport for London and Network Rail to collaborate and input into a design commission to produce a scheme design for a new permanent station building on the north side of Hackney Central station.

REASONS FOR DECISION

To improve capacity at Hackney Central station in the short term and ensure that the relevant parties are actively pursuing a more permanent solution for a new station building in Hackney Central which can accommodate future growth in the town centre (contributing to delivering the draft Local Plan borough wide target of 26,250 new homes and 23,000 new jobs by 2033), is reflective of Hackney Central’s status as a Major Town Centre in the London Plan and Local Plan, and is in accordance with the Local Plan and Hackney Central Masterplan (2017) objective to create an improved station and town centre arrival point in Hackney Central on the north side of the station.

DETAILS OF ALTERNATIVE OPTIONS CONSIDERED AND REJECTED

Another option considered is to do nothing and not use Council land to provide a new entrance on Graham Road. This is not considered a viable option as based on the reasons set out in this report the station is currently operating over capacity and urgent action is required to create more space for the access, egress and interchange of passengers. The capital funding for the station improvement works will not be provided by the Council but will be funded by Network Rail.

Another option considered was to not provide a new entrance in the short term and instead commence the design process to come up with a costed design for a new permanent station building on the north side of the station. This option was rejected due to the need to resolve the station capacity issue as soon as possible and, as stated, the capital funding for the station improvement works will not be provided by the Council but will be funded by Network Rail.

It is therefore considered that the best option is to deal with the immediate capacity issues at the  ...  view the full decision text for item 15.

This report advises Cabinet of the need to review the recharges applicable to Kings Crescent leaseholders, and provide clarity on the scope and application of the approach specifically to Kings Crescent Phase 3 and 4 regeneration plans.

RESOLVED

i.    That for resident leaseholders within Bramfield, Datchworth, Theobalds and Weston Court (Kings Crescent Phases 3 and 4) with leases without improvement clauses, it be agreed to apply a £10,000 cap to the amount of costs which could be recharged for the major repairs works,  as outlined in paragraph 6.3.3. of the report, and that the cap to apply until the completion date of the aforementioned works, forecasted to be 2024, and that for the avoidance of doubt, the cap shall not apply to non-resident leaseholders at the date when Section 20 Notices will be issued;

 ii.    that  resident leaseholders within Bramfield, Datchworth, Theobalds and Weston Court (Kings Crescent Phases 3 and 4) with leases with improvement clauses, it be agreed to apply a £10,000 cap to the major repairs works and the improvement works as outlined in paragraph 6.1.4. of the report, and that the cap to apply until the completion date of the aforementioned works, forecast to be 2024, and that  for the avoidance of doubt, the cap shall not apply to non-resident leaseholders at the date when the first Section 20 Notice for the works will be issued; .

iii.  that a restriction be applied to  the application of the £10,000 cap for resident leaseholders to the costs associated with the approved package of works as part of the estate regeneration project on Bramfield, Datchworth, Theobalds, and Weston Courts, and that . All future works undertaken under the Council’s asset management plans to be excluded from the cap; 

iv.    that, in the event of a resident leaseholder ceasing to be a resident leaseholder within five years of the final accounts being issued, a proportion of the uncharged element of the works will be repayable through a clawback mechanism be secured and that the repayable amount be reduced in equal steps from 100% in the first year following the final accounts being issued to 20% in the fifth year;

v.    that authority be delegated to the Group Director of Neighbourhoods and Housing in consultation with the Group Director of Finance and Corporate Resources, and the Director of Legal and Governance to determine the detailed arrangements for the implementation of the discretionary major works and improvements service charge reduction for resident leaseholders including the clawback mechanism in iv. above; and

vi.  that authority be delegated to the Group Director Neighbourhoods and Housing in consultation with the Group Director of Finance and Corporate Resources to vary the schedule of works within the cap, as set out in i. and ii. above  in order to facilitate the delivery of the Kings Crescent estate regeneration.

REASONS FOR DECISION

Kings Crescent Estate had a long history of stalled attempts at regeneration before the Council successfully delivered Phases 1 and 2 of the regeneration in 2017. The substantive demolition was completed in 2002 in anticipation of a housing association and developer partnership delivering the regeneration. There followed two failed attempts through such delivery methods and,  ...  view the full decision text for item 16.

There were no School Governor appointments.

NOTED

To approve any appointments to outside bodies.

There were no appointments to outside bodies.

NOTED

To consider any items admitted at Item 2 above.

There were no unrestricted items of urgent business.

NOTED

Note from the Governance Services Manager

Item 21 allows for the consideration of exempt information in relation to item 7.

The following MOTION should be proposed:

RESOLVED:

That the press and public be excluded from the remainder of the meeting as the items below contain exempt information, as defined under paragraph, 3 & 5 of Part 1, schedule 12A of the Local Government Act 1972.

RESOLVED:

That the press and public be excluded from the remainder of the meeting as item 20 below contains exempt information, as defined under paragraph 3 of Part 1, schedule 12A of the Local Government Act 1972.

To receive the exempt minutes of the Cabinet Procurement Committee (CPC) held on 10 February 2020 - for noting only.

RESOLVED

That the exempt minutes of the meeting of Cabinet Procurement Committee held on 10 February 2020 be received and noted.

To consider any EXEMPT items admitted at Item 2 above.

There were no exempt items of urgent business.

NOTED