The tree In my garden as lots of red cocoons on its leaves, I assume these are insects, do I need to be concerned or are they harmless?

Here's some Insect advice from Penn State.
In summary, it sounds like you have a mite problem for your tree (take note of the other trees, that looks like a maple leaf to which this insect is characteristic); they are "commonly referred to as eriophyid mites".
