Agenda, decisions and minutes

1.1  Apologies were received from Cllr Moema, and both Cllr Coban and Cllr Etti joined the meeting online.

Members are invited to consider the guidance which accompanies this agenda and make declarations of interest as appropriate.

2.1  There were no declarations of interest

The Chair will consider the admission of any late items of Urgent Unrestricted Business which will be considered under the agenda item where they appear.

3.1  There was no urgent business for consideration

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 the Exclusion of the Press and Public agenda item.  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.

4.1  No representations were received.

At the  time of the agenda publication, no questions or deputations have been received.

5.1  Members of the public attended to ask questions related to agenda item 8, CE S247 School Estate Strategy, and those questions were considered during the discussion of the relevant agenda item.

To confirm the minutes of the previous meetings of Cabinet held on 24 July  2023, and 17 August 2023 as a correct record.

RESOLVED: That the minutes of the previous meetings of the Cabinet held on 24 July 2023 and 17 August 2023 were agreed.

To note the minutes of the Cabinet Procurement and Insourcing Committee (CPIC) held on 3 July 2023.

RESOLVED: That the minutes of the previous meeting of the Cabinet Procurement Insourcing Committee held on 3 July 2023 be noted.

To Follow - at the time of the agenda publication the report was undergoing additional due diligence checks.

RESOLVED:

Cabinet proceed to publish statutory proposals to:

3.1  close De Beauvoir Primary School from September 2024.

3.2  close Randal Cremer Primary School from September 2024.

3.3  close Colvestone Primary School from September 2024, guarantee all children a place at Princess May Primary School if they want it.

3.4  close Baden Powell Primary School from September 2024, guarantee all children a place at Nightingale Primary School if they want it.

3.5  increase the published admission number of Nightingale Primary School by adding an additional form of entry to all year groups. This proposal is related to the decision at 3.4.

REASON FOR DECISION

Following seven years of unprecedented growth, the number of primary aged children joining reception classes in Hackney primary schools peaked in 2014/15 and has been in steady decline since, a trend observed across London and most prevalent in inner-London boroughs. Applying the information available to us, pupil numbers joining reception classes are not forecast to rise significantly in future, for the time we have forecasts for (see Appendix C).

School funding is primarily determined by the number of children on roll, and falling rolls equate to reduced funding to deliver education across the borough. While primary schools’ rolls are falling but the number of schools remains unchanged, there is effectively less financial resource across all schools. This is because many costs are driven by the number of classes in a school, whereas funding levels are driven by the number of pupils.

The Council has a statutory duty to ensure there are a sufficient number of school places for pupils and that places are planned effectively. The Council monitors surplus reception places, a key measure of demand, and aims to maintain a 5-10% surplus across all Hackney primary schools.

Despite removing 375 reception places across Hackney schools between 2019 and 2023, the projections still indicate a steady increase in surplus reception places from 19% in 2023/24 up to 23% in 2025/26. This surplus is then projected to slowly decrease and stagnate at 20% until the end of the projection period in 2031/32. Analysis of past, current and projected demand and summary of reception places removed to date is provided in Appendix C.

Hackney Education’s senior leadership team took the decision to propose closure/merger of six schools in September 2022 following analysis of a range of objective measures evidencing the impact of falling rolls on school’s viability. Following early engagement with head teachers and chairs of governors from January 2023 the proposals were publicly launched on 28 March 2023 and school community engagement activity was undertaken with staff and parents in April 2023. Community queries and feedback from March to May period can be seen in Appendix D by theme (as it was detailed in May 2023 Cabinet report appendices).

On 22 May 2023 Cabinet decided to proceed to consultation on all four proposals (The May cabinet paper is included as Appendix E). The consultation ran for 6 weeks, from 5 June to 16 July 2023, gathering feedback on  ...  view the full decision text for item 8.

8.1  Deputy Mayor Anntoinette Bramble, Chair of Cabinet and Cabinet Member for Education, Young People and Children’s Social Care, introduced the report and thanked those in attendance and all those who took part in the consultation.  The Deputy Mayor confirmed that the Council had not wanted to be in the position where it had to contemplate the closure and amalgamation of schools, and spoke to the important role that schools play in all our lives. 

8.2  It was noted that 97% of Hackney’s schools were rated ‘Good’ or ‘Outstanding’, and that no school was in scope of the proposed decision through any fault of its own.  The drivers behind the proposed decision, including a fall in the birthrate and the impacts of both Brexit and the Covid pandemic, were out of the Council’s control and the measures that had been put in place had not managed to increase the uptake of school numbers.  In the absence of additional funding from the Government, the Council could not be irresponsible and do nothing.

8.3  The Deputy Mayor, using her discretion as Chair of Cabinet, confirmed that one hour had been allocated to receive questions from members of the public.  Members of the Save Colvestone Primary School campaign asked the Cabinet whether they were aware the Council had been served with a pre-action notification; whether the financial performance of the new school leadership team had been considered; about the logic of writing off debt, rather than allowing the school to pay it down over time; whether the policy would drive pupils and staff into private, Free and academy provision; whether a Hackney school with vacancies over 10% should seek to join a Free School multi-academy trust (MAT); whether the consultation approach had been undemocratic and liable to legal challenge; what the point of the consultation was; whether Hackney Labour was seeking to promote an increased share for the for-profit education sector; about the long-term impact of the Dalston Plan; whether pupils from De Beauvoir Primary School could attend Colvestone Primary School; the impact on children with protected characteristics of moving schools; whether Cabinet had seen a cost-benefit analysis of a proposed closure; what support would be provided to families of SEND children; and, about the impact of the latest school vacancy statistics, that were confirmed after the report was published, on available places.

8.4  Deputy Mayor Bramble and Cllr Caroline Woodley, Cabinet Member for Families, Parks and Leisure, responded and confirmed that;

·  Cabinet had been made aware of the pre-action notice, and the report publication had been delayed to allow Officers to take note of the issues raised;

·  the school’s new management team had helped to improve the school’s finance, but the Council still had to provide financial support;

·  the school’s financial model was not sufficient to ensure the school’s sustainability; 

·  The Council had no power to influence Free Schools and academies;

·  the Council encouraged grant maintained schools to remain grant maintained, but every headteacher had to decide what was best for their  ...  view the full minutes text for item 8.

RESOLVED:

1.  That the scheme for Finance and Corporate Resources Directorate as set out in section 11 be given approval as follows:

Network Equipment Upgrades and Maintenance: Spend approval of £500k (£300k in 2023/24 and £200k in 2024/25) is requested to enable the Council ICT department to deliver further upgrades to network connectivity (including Council offices, Temporary Accommodation hostels and Community Halls).

Targeted Services Systems Development: Spend approval of £750k (£300k in 2023/24 and £450k in 2024/25) is requested to enable the Council ICT Department to build on existing ICT investments, as well as designing and building new digital products and assets.

Liveable Hackney: Spend approval of £1,006k (£906k in 2023/24 and £99.7k in 2024/25) is requested to enable the Council’s ICT Department to deliver further system and data upgrades to support modernisation across Planning and Building Control; Licensing; Land charges; Environmental Operations; Community Enforcement and Business Regulation; and Public Realm, Highways and Streetscene.

2.  That the scheme for Climate, Homes & Economy Directorate as set out in section 11 be given approval as follows:

Leisure, Parks and Green Spaces: Resource and spend approval of £2,075k is requested for additional funding for three projects: Abney Park Restoration (£875k in 2023/24), London Fields Lido Teaching Pool (£700k in 2024/25) and West Reservoir Improvements (£500k in 2024/25).

3.  That the s106 Capital scheme summarised below and set out in section 11 be approved:

4.  That the s106 Revenue scheme summarised below and set out in section 11 be approved:

5.  That the s106 Capital scheme summarised below and set out in section 11 be noted:

6.  That the schemes outlined in section 12 and 13 be noted.

7.  That the expenditure plans and associated resources to be carried from 2022/23 to 2023/24 as set out in Appendix 1 and summarised below be approved:

8.  That the re-profiling of the budgets as set out in Appendix 1 and summarised below be approved:

9.  That the capital adjustments of the budgets as set out in Appendix 1 and summarised below be approved:

REASONS FOR DECISION

The decisions required are necessary in order that the schemes within the Council’s approved Capital programme can be delivered and to approve the property proposals 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  ...  view the full decision text for item 9.

9.1  Cllr Robert Chapman, Cabinet Member for Finance, Insourcing and Customer Service, introduced the report and confirmed that although the Council faced a difficult financial position it continued to invest in services.  Cllr Chapman highlighted the investment into network connectivity, leisure facilities, and parks.

9.2  Cllr Guy Nicholson, Deputy Mayor for Delivery, Inclusive Economy and Regeneration, spoke in support of the report and noted the section 106 investment into projects including libraries, street scene, and public open spaces, and the funding for the Principal Climate Change and Sustainability Officer within the Planning team.

RESOLVED:

1.  That the scheme for Finance and Corporate Resources Directorate as set out in section 11 be given approval as follows:

Network Equipment Upgrades and Maintenance: Spend approval of £500k (£300k in 2023/24 and £200k in 2024/25) is requested to enable the Council ICT department to deliver further upgrades to network connectivity (including Council offices, Temporary Accommodation hostels and Community Halls).

Targeted Services Systems Development: Spend approval of £750k (£300k in 2023/24 and £450k in 2024/25) is requested to enable the Council ICT Department to build on existing ICT investments, as well as designing and building new digital products and assets.

Liveable Hackney: Spend approval of £1,006k (£906k in 2023/24 and £99.7k in 2024/25) is requested to enable the Council’s ICT Department to deliver further system and data upgrades to support modernisation across Planning and Building Control; Licensing; Land charges; Environmental Operations; Community Enforcement and Business Regulation; and Public Realm, Highways and Streetscene.

2.  That the scheme for Climate, Homes & Economy Directorate as set out in section 11 be given approval as follows:

Leisure, Parks and Green Spaces: Resource and spend approval of £2,075k is requested for additional funding for three projects: Abney Park Restoration (£875k in 2023/24), London Fields Lido Teaching Pool (£700k in 2024/25) and West Reservoir Improvements (£500k in 2024/25).

3.  That the s106 Capital scheme summarised below and set out in section 11 be approved:

4.  That the s106 Revenue scheme summarised below and set out in section 11 be approved:

5.  That the s106 Capital scheme summarised below and set out in section 11 be noted:

6.  That the schemes outlined in section 12 and 13 be noted.

7.  That the expenditure plans and associated resources to be carried from 2022/23 to 2023/24 as set out in Appendix 1 and summarised below be approved:

8.  That the re-profiling of the budgets as set out in Appendix 1 and summarised below be approved:

RESOLVED:

Recommendations

1.  To agree a refund of £2.56m to a ratepayer and its rating agent as described in 2.13 above

2.  To note the overall financial position of the Council as at July 2023 as set out in this report.

REASONS FOR DECISION 

To facilitate financial management and control of the Council's finances.

DETAILS OF ALTERNATIVE OPTIONS CONSIDERED AND REJECTED

This budget monitoring report is primarily an update on the Council’s financial position and there is also a recommendation to approve a refund for a duplicate business rates payment and a small overpayment

10.1  Deputy Mayor Bramble thanked both the Council’s Finance team and Cllr Chapman for their management of the pressures that had challenged other local authorities such as Birmingham City Council. 

Cllr Kennedy left the meeting and did not return.

10.2  Introducing the report, Cllr Chapman confirmed that the Council’s finances were sound.  Though there were financial challenges, including a projected overspend of c£9m, these were being addressed as per the report. 

RESOLVED:

1.  To agree a refund of £2.56m to a ratepayer and its rating agent as described in 2.13 above

2.  To note the overall financial position of the Council as at July 2023 as set out in this report.

REASONS FOR DECISION

To facilitate financial management and control of the Council's finances.

DETAILS OF ALTERNATIVE OPTIONS CONSIDERED AND REJECTED

This budget monitoring report is primarily an update on the Council’s financial position and there is also a recommendation to approve a refund for a duplicate business rates payment and a small overpayment.

RESOLVED:

Cabinet is recommended to note the Annual Report.

11.1  Deputy Mayor Bramble confirmed the Council’s commitment to safeguarding and the duty to tackle abuse and neglect in all its forms, and that all Hackney’s residents should enjoy the right to be safe and live in communities that did not tolerate abuse of any kind.

11.2  Dr Adi Cooper OBE, Independent Chair of the City and Hackney Safeguarding Adults Board, highlighted the work by partners across Hackney, the progress being made in relation to improvement and development, and confirmed that all duties in relation to Safeguarding Adults Reviews had been met.

RESOLVED: Cabinet is recommended to note the Annual Report.

RESOLVED:

Cabinet is recommended to:

Approve the confirmation of an Article 4 Direction (A4D) (Appendix 1) to withdraw the permitted development (“PD”) rights granted by Schedule 2, Part 3, Class MA of the Town and Country Planning (General Permitted Development) (England) Order 2015 (as amended) (“the GDPO”) for changes of use from Class E to a dwellinghouse (Class C3) in Hackney’s Designated Industrial Areas (as shown in Appendix 2).

REASONS FOR DECISION

The Council considers that the permitted development right allowing change of use from Use Class E (commercial, business and services) to C3 (dwellinghouse)  may constitute a threat to the amenities, economy and jobs of the Borough and would be prejudicial to the proper planning of the Borough, in particular the Council’s ability to prevent the loss of uses which contribute to the wider strategic aims for the area.

The Article 4 Direction is considered necessary because the Council’s designated industrial areas planning policies are based on robust evidence which establish a need to protect industrial and employment uses in the Priority Industrial Areas and Locally Significant Industrial Sites. The Article 4 Direction enables full consideration of proposals at the planning application stage. The permitted development rights would undermine the operation of these policies and may impact negatively on the provision of industrial spaces, employment spaces and jobs in the Borough.

DETAILS OF ALTERNATIVE OPTIONS CONSIDERED AND REJECTED

Details of Alternative Options Considered and Rejected

The alternative option is not to confirm the Article 4 Direction. This has been rejected because the Council would be unable to protect commercial, business and service floorspace in accordance with adopted planning policies and this would negatively impact on the provision of jobs, and in the longer term possibly change the character, function and commercial viability of the designated industrial areas.

12.1  Deputy Mayor Nicholson confirmed that the new Direction would apply to approximately 10 wards in the Borough, was focused on priority industrial areas, and would require any developer to come forward to seek planning permission before any development would be approved.

RESOLVED: Cabinet is recommended to approve the confirmation of an Article 4 Direction (A4D) (Appendix 1) to withdraw the permitted development (“PD”) rights granted by Schedule 2, Part 3, Class MA of the Town and Country Planning (General Permitted Development) (England) Order 2015 (as amended) (“the GDPO”) for changes of use from Class E to a dwellinghouse (Class C3) in Hackney’s Designated Industrial Areas (as shown in Appendix 2).

REASONS FOR DECISION

The reasons for the decision were included in the printed decisions, published on the 26 September 2023, and can be found here.

DETAILS OF ALTERNATIVE OPTIONS CONSIDERED AND REJECTED

The alternative option is not to confirm the Article 4 Direction. This has been rejected because the Council would be unable to protect commercial, business and service floorspace in accordance with adopted planning policies and this would negatively impact on the provision of jobs, and in the longer term possibly change the character, function and commercial viability of the designated industrial areas.

RESOLVED:

That Cabinet gives approval for the Council to enter into a Grant Funding Agreement with Allia Impact for the delivery of the Hackney Business Support Programme under which the Council would provide to Allia Impact the maximum sum of £627,971 over a period of 18 months.

REASONS FOR DECISION

Hackney Council is in receipt of GLA grant funding and has to deliver on its funding agreement obligations, these include a range of business support commitments.

A key decision via Cabinet is required to award funding on a grant basis when the funding agreement has a value which is significant, or has a significant  impact on two or more wards.

DETAILS OF ALTRENATIVE OPTIONS CONSIDERED AND REJECTED

Do Nothing

The Council could opt not to deliver any business support. However, this would constitute a breach of the funding agreement resulting in the return of essential funds to the GLA that can be used to benefit local businesses.

Opting not to establish a programme mechanism to deliver business support would also be a considerable missed opportunity to support local businesses and deliver the Council’s inclusive economy commitments at a time when businesses are in great need of support.

Alternative procurement approach: Procurement  of business support provider via a services contract

The Business Support Programme could have been secured through a contract for services achieved through a standard procurement exercise. A traditional procurement approach would have drawn on the same potential providers and may have resulted in the same preferred provider. However, a services contract drives contractual and output focussed behaviour within a supply chain that most often undermines collaborative and outcomes focussed approaches.

Additionally, a procurement exercise requires the purchaser to be more prescriptive and stipulate how services are to be delivered. By comparison, a grant award focuses on outcomes and impact, while allowing the supplier flexibility in the delivery approach that enables positive iteration and refinement of delivery in response to input from partners and feedback from beneficiaries. A Grant Funding Agreement allows greater flexibility, innovation and a more responsive approach to achieving the intended outcomes.

The chosen approach draws on experience gained through the Council’s successful business support programme that utilised Central Government grant funding to help businesses recover from pandemic related lockdowns.

13.1  Introducing the report Deputy Mayor Nicholson confirmed it authorised a grants payment to an organisation identified in the exempt appendix.  The money came from the UK Shared Prosperity Fund, which was the replacement for the European Social Fund and the European Regional Development Fund.  Deputy Mayor Nicholson confirmed that the amount available was relatively insignificant in comparison to the sums that had been available when the UK was a member of the European Union.

RESOLVED:

That Cabinet gives approval for the Council to enter into a Grant Funding Agreement with Allia Impact for the delivery of the Hackney Business Support Programme under which the Council would provide to Allia Impact the maximum sum of £627,971 over a period of 18 months.

REASONS FOR DECISION

The reasons for the decision were included in the printed decisions, published on the 26 September 2023, and can be found here.

DETAILS OF ALTERNATIVE OPTIONS CONSIDERED AND REJECTED

Do Nothing

The Council could opt not to deliver any business support. However, this would constitute a breach of the funding agreement resulting in the return of essential funds to the GLA that can be used to benefit local businesses.

Opting not to establish a programme mechanism to deliver business support would also be a considerable missed opportunity to support local businesses and deliver the Council’s inclusive economy commitments at a time when businesses are in great need of support.

Alternative procurement approach: Procurement  of business support provider via a services contract

The Business Support Programme could have been secured through a contract for services achieved through a standard procurement exercise. A traditional procurement approach would have drawn on the same potential providers and may have resulted in the same preferred provider. However, a services contract drives contractual and output focussed behaviour within a supply chain that most often undermines collaborative and outcomes focussed approaches.

Additionally, a procurement exercise requires the purchaser to be more prescriptive and stipulate how services are to be delivered. By comparison, a grant award focuses on outcomes and impact, while allowing the supplier flexibility in the delivery approach that enables positive iteration and refinement of delivery in response to input from partners and feedback from beneficiaries. A Grant Funding Agreement allows greater flexibility, innovation and a more responsive approach to achieving the intended outcomes.

The chosen approach draws on experience gained through the Council’s successful business support programme that utilised Central Government grant funding to help businesses recover from pandemic related lockdowns.

RESOLVED:

1.  To authorise the transfer of freehold titles LN169992, LN173983, LN173984 at the School as set out in paragraph 4 below.

2.  3To authorise the Group Director of Finance and the Director of Strategic Property Services to determine the most cost effective options in terms of transferring the land in ways that represent best value on the part of the Council.

3.  To authorise the Acting Director of Legal, Democratic & Electoral Services to negotiate, sign, settle and complete the contracts envisaged to complete the transactions set out in this report, and all other relevant and ancillary legal documents arising thereto on behalf of the Council.

REASONS FOR DECISION

Under the Act the Council is required to transfer land (other than playing fields) which is held or used by the Local Authority for the purposes of the school to LDBS . The land is to be transferred for nil or nominal consideration and to be held by the LDBS  for the purposes of the school. 

The Council in accordance with the Act will be responsible for the for the legal costs of The London Diocesan Board for Schools in respect of each transfer.

DETAILS OF ALTERNATIVE OPTIONS CONSIDERED AND REJECTED

LDBS are entitled under the Act to the transfer to them of land forming part of a school site and the Diocesan Board has requested the Council to carry out these transfers.

14.1  Cllr Chapman noted that the Council was required to transfer the land that was part of the St. Mary’s School site, from its ownership to the school’s. Deputy Mayor Bramble confirmed that St. Mary’s School played an important part in its local community and the Council would continue to offer the same levels of support and partnership.

RESOLVED:

1.  To authorise the transfer of freehold titles LN169992, LN173983, LN173984 at the School as set out in paragraph 4 below.

2.  3To authorise the Group Director of Finance and the Director of Strategic Property Services to determine the most cost effective options in terms of transferring the land in ways that represent best value on the part of the Council.

3.  To authorise the Acting Director of Legal, Democratic & Electoral Services to negotiate, sign, settle and complete the contracts envisaged to complete the transactions set out in this report, and all other relevant and ancillary legal documents arising thereto on behalf of the Council.

REASONS FOR DECISION

The reasons for the decision were included in the printed decisions, published on the 26 September 2023, and can be found here.

DETAILS OF ALTERNATIVE OPTIONS CONSIDERED AND REJECTED

LDBS are entitled under the Act to the transfer to them of land forming part of a school site and the Diocesan Board has requested the Council to carry out these transfers.

RESOLVED: Cabinet is recommended to note the Delegated Powers Report.

Note from the Governance Team Leader:

Items 17- 18 allow for the consideration of exempt information.

Proposed resolution:

That the press and public be excluded during discussion of the remaining items on the agenda, on the grounds that they involve the likely disclosure of exempt information as defined in Part 1 of Schedule 12A of the Local Government Act 1972.

RESOLVED: THAT the press and public be excluded from the proceedings of the Cabinet during consideration of Exempt items 17 - 18 on the agenda on the grounds that it is likely, in the view of the nature of the business to be transacted, that were members of the public to be present, there would be disclosure of exempt information as defined in paragraphs 1 and 2 of Schedule 12A to the Local Government Act 1972 as amended.

17.1  The Cabinet agreed that no further consideration of the exempt appendices in relation to agenda item 13 was required.

The Chair will consider the admission of any late items of Urgent Exempt Business

18.1  There were no new exempt items for consideration.