Agenda item

[Report of the Director for Tottenham. To be introduced by the Cabinet Member for Economic Development, Social Inclusion & Sustainability]To confirm the appointment of Community Shop as the social supermarket provider for Northumberland Park.

The Cabinet Member for Economic development, social inclusion and sustainability introduced the report which sought approval to award a Concession Contract to the Community Shop C.I.C. (Community Interest Company) to operate a Social Supermarket facility at the Eric Allin Centre on Northumberland Park for a period of up to 10 years.

The Cabinet Member outlined that social supermarkets have been recognised by the GLA as a positive way of supporting those on low incomes, tackling poor diet and overcoming health inequalities, through the provision of surplus stock being sold at heavily subsidised prices. The structured support and development programme sitting alongside membership aligned with the socio-economic aims of our regeneration programme in Northumberland Park by assisting members to improve their economic and social wellbeing.

In response to a local resident’s questions asked outside of the meeting:

1. The address for the social supermarket will remain the same (i.e. ‘Northumberland Park Social Supermarket’, Eric Allin Centre, and Kenneth Robbins House] and keep the reference to Eric Allin, a recognised popular Tottenham community figure.

2. Social supermarket governance expected to involve community members fully both formally (whether through something like a steering group, community forum or as board members) and informally (through presentations to the three Residents Associations etc).

3. The social supermarket was located in the very east of the Northumberland Park ward. It had a membership limit of 750 members at any one time which was a considerable number but due to the levels of deprivation in Northumberland Park can unfortunately be filled very easily by residents of Northumberland Park alone. The impact of the improvements a social supermarket can bring are magnified if it affects a large number of people within the same community, this is particularly true of Northumberland Park where unemployment and low wages are particularly prevalent within the relatively small area of the Northumberland Park estate. Therefore, if it was extended to residents of White Hart Lane (or Bruce Grove) ward its impact could be somewhat watered down. To some extent this is a pilot and the Council will see the impact it has. If it is as successful as then there may be scope to extend outwards to other wards or introduce something similar that can be equally beneficial to residents of those wards.

RESOLVED

1. In accordance with CSO 9.06.1(d),  to approve the award of a Concession Contract to Community Shop C.I.C., for an initial period of 5 years with  options to extend for further periods of 3 and 2 years, to set up and operate a Social Supermarket at the Eric Allin Centre in Northumberland Park;

2. To approve a budget for this project of £185,000 as an addition to the capital programme, financed by £85,000 from the Council’s Housing Revenue Account (HRA) and £100,000 of grant funding allocated to the Council by the Greater London Authority (GLA) for this project;

3. To approve provision in the Concession Contract for a payment to Community Shop C.I.C. towards the capital costs of setting up of the Social Supermarket during 2016/17, including building refurbishment and shop fit out works, of a total of £185,000;

4. To note that Community Shop C.I.C. will be required to fund any establishment costs beyond the payment set out in paragraph 3.1(ii);

5. To approve the grant to Community Shop C.I.C. of a Community Lease for the Eric Allin Centre at a rent of £8,000 per annum;

6. That the approvals above [1 – 5] were conditional on the Council finalising a funding agreement with the GLA for this project, which has been agreed in principle. 

Reasons for decision

The social supermarket will help to demonstrate to residents of the Northumberland Park estate that the Council is genuinely committed to socio-economic improvements alongside physical regeneration and housing growth. It is a model which enables residents in Northumberland Park who are in receipt of some form of means tested benefit to enter into a six month membership scheme (open to 750 households at any one time). Membership of the social supermarket will include enrolment into a ‘success programme’ which will help members benefit from the employment and business opportunities that are arising in Northumberland Park both now and through the longer term delivery of the regeneration programme.

In addition, the social supermarket will highlight the benefits of healthy cooking and eating through the provision of cheap healthy groceries and a subsidised canteen serving healthy food. The aim is that through sustained exposure to such dietary and cooking methods, members will be encouraged to switch to making healthier diet choices and help address the health inequalities which currently plague Northumberland Park.

The Eric Allin Centre, occupying half of the ground floor of Kenneth Robbins House on the Northumberland Park estate, was identified as the most suitable location. Prior to 2010 it was a dilapidated community centre in need of significant renovation. It was converted into a showroom and office for the decent homes programme and, with the exception of short term projects like Volunteer It Yourself, has remained empty since the programme ended. Project 2020 opened next door after the Eric Allin Centre ceased to be used as a community centre and many of the previous tenants moved there or found alternative premises. The Council has also provided a Community Hub nearby at 163 Park Lane as part of the regeneration programme. As a result the social supermarket will provide an additional community benefit alongside more traditional community spaces.

Alternative options considered

Do Nothing

The Council could choose not to open a social supermarket, leaving the Eric Allin Centre to remain as an underused building offering very little benefit to the existing community. This option was discounted as it would result in a missed opportunity to provide a service that will benefit a large proportion of residents in the Northumberland Park area. Beyond the initial capital contribution, there is no ongoing financial commitment by the Council and the scheme is in line with the Council’s regeneration priorities and is supported (and part funded by) the GLA.

Negotiate exclusively with Community Shop without a tender process Community Shop is the only widely known supplier with the capability of providing the wide range of services associated with a social supermarket. It was not known if other suppliers would wish to extend the range of services they offered or other suppliers would form consortiums to offer the range of services associated with the social supermarket. In the absence of specific market intelligence, it was decided not to enter into exclusive negotiations with Community Shop for the provision of the Social Supermarket. 

Preferred option

It was agreed to run a transparent procurement process by issuing an OJEU Notice and competing the opportunity applying EC Treaty principles to identify any potential suppliers that may wish to provide the social supermarket.  This approach has provided an opportunity for other respondents to participate if they could offer the range of services for the Social Supermarket. While there was a time impact it demonstrates a commitment to open competition and securing “best value” for the public funding being offered