The 160-page report was described as ‘independent’ despite having been produced by a company part-owned by the council, reports Sebastian Mann, Local Democracy Reporter
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A survey report used by Waltham Forest councillors to justify closing a centre for disabled adults will undergo further review after its integrity was challenged.
The 160-page report, produced by a company called Evolve Norse, concluded the Markhouse Centre required £1.2million in repairs, which councillors said was too expensive.
But serious concerns were raised by opposition members after it was revealed that deputy leader Ahsan Khan and Joe Garrod, the council’s acting director of place, were directors of the company.
The town hall has a 25% stake in the business, against Norfolk County Council’s 75%.
The purpose is to save the council money through “access to outsourced construction services such as design, surveying, and property management”. Garrod and Cllr Khan are in “strategic” roles and have no say in the “day-to-day operations,” a spokesperson said.
The Labour-run council did not disclose its links to the company in any public meeting before voting to close the Markhouse Centre, which is used by more than 50 adults, on 3rd December.
The decision and report went before a scrutiny meeting on 10th December, after being formally challenged by Conservative councillors.
In a statement read out by deputy group leader Afzal Akram, councillor Catherine Saumarez said the council’s decision needed to be “put on hold” until a “truly independent report” was produced.
She added that it was a “foregone conclusion” the centre would be closed.
Councillors were only sent a copy of the report at 2.17pm on 3rd December, 17 minutes into the cabinet meeting where its fate was decided. She said this gave them “no option” to scrutinise the lengthy report, and was an “insult” to service users.
Councillor Louise Mitchell, the cabinet member for social care, said the use of the word ‘independent’ was unfortunate”.
She said: “The use of the word ‘independent’ in relation to the review was unfortunate and we’ll hold our hands up to that.
“It was used by an adult social care officer, not by property services or legal, who would have had much more understanding of the joint venture and how it works.
“It was an unfortunate use of one word and does not negate the detail included in the 168 pages in the report.”
She was joined by Marc Gadsby, the council’s adult services director and Jeremy Walling, the head of commercial law.
Walling added that, because Cllr Khan and Garrod’s interests in Evolve did not involve payment, they did not need to declare an interest.
However, Cllr Akram said the word independent had been “continually used,” when “not one normal member of the public would deem it independent”.
Campaigner James O’Rourke, whose brother Tony attends the Markhouse Centre, said he would seek a judicial review if the centre was closed.
Though Walling said the council felt was unlikely to succeed, Cllr Akram warned they can cost “hundreds of thousands” to fight.
During the meeting, the six-strong adult social care committee recommended that an independent company reviews the report and any discrepancies, before it goes to cabinet again.
Campaigners had previously clashed with the council over the cost to replace the Markhouse’s boilers. The council said it would cost £100,000 to refit the entire heating room, while locals produced a quote for a company to fit two new boilers for £14,992.
There are three boilers in the building, and the town hall argues the two costs “do not compare like for like”.
Cllr Akram recommended the council produce an entirely new report, but five councillors voted against him.
Vice chair Richard Sweden said the committee was seeking to “allay the perception” it was not independent. He added there was “no impropriety” in the process behind the report.
Nancy Taaffe, the assistant secretary of the Waltham Forest Trades Council, said after the meeting the council needed to “consider the bigger picture”.
She added: “The country voted to end austerity, the Labour government said they were going to, and yet this most intimate and fragile of services is the first big cut in the area after the general election.”
When proposals to close the centre were put forward in June, Cllr Williams said the authority wanted to move away from a “building-based approach” to a “people-based approach”.
She said last Tuesday it was not the decision the council wanted to make, but “we do it because we know the alternatives are worse”.
She said the council faces a “high prospect” of effective bankruptcy if it does not address its overspends, which are projected to be as high as £24m over the next three years, she added.
The review is expected to go back before the cabinet in February 2025.
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