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Council - Wednesday, 22nd January, 2025 7.00 p.m.

January 22, 2025 View on council website Watch video of meeting
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Summary

The meeting started with a tribute to former Councillor Ray Gibson, who passed away at the end of 2024. The Council then received a presentation from pupils at St John's School, Bethnal Green, who sang to celebrate the Council's recent Ofsted rating for Children's Services. The Council formally noted the 'outstanding' rating, and discussed the improvements that have taken place in the service since it was rated as 'inadequate' in 2017.

Divestment of Pension Funds

The Council discussed an Aspire Party motion calling for an audit of its pension funds and a declaration that the Council will divest from companies involved in arms dealing. The motion was triggered by a petition presented to the Council's Pensions Committee, and follows a decision in August 2024 by Waltham Forest Council to divest £773,000 of its pension fund that was invested in arms companies.

Councillor Sayeed Ahmed, who proposed the motion, said that the motion aimed to increase the transparency of the Council's investments. He noted that many of our staff have approached me, either via the Trade Unions or in person, to outline their discomfort in knowing that their pension money could be used to fund weapons.

Councillor Abu Talha Choudhury, who seconded the motion, said that there is no reason why a pension fund should be investing in the weapons manufacturing sector, and even less reason for a local council in Britain to be associated with weapons.

The Labour Party proposed a friendly amendment that would expand the audit and divestment to cover companies involved in violations of human rights and international law. They cited conflicts in Sudan, the Democratic Republic of Congo and the ongoing occupation of Palestine as examples of where Tower Hamlets pension funds could be contributing to human rights abuses, and argued that the Council should also divest from fossil fuel companies.

Councillor Amy Lee, who proposed the amendment, said that it is no use for this Council to aim to reach net zero if our pension fund is going to continue to be used to fund new fossil fuel explorations. Our staff, who are working hard to make this council as green and clean as possible for future generations, should not be in the position where their hard-earned money will be used to contribute to the droughts, floods, heat waves, and destruction caused by a changing climate.

Councillor Peter Golds, who leads the Conservative Party group in the Council, said that he would vote against the motion. He argued that arms are not pleasant, but I am afraid it is a fact of life. Countries defend themselves. He noted that investment in arms manufacturers allows those companies to pay dividends, and these dividends contribute to the value of the pension fund.

The Labour amendment was rejected by the Council, and the Aspire motion was then approved.

Best Value Inspection

The Council then debated a Labour Party motion relating to a recent Best Value Inspection of the Council by the Department for Levelling Up, Housing and Communities. This motion was triggered by the publication of the Best Value Inspection report in November 2024.

The report was critical of the Council in a number of areas. It described the political culture in the Council as toxic and argued that the Council was not sufficiently open and transparent in its decision making. It concluded that the Council would require external support to implement its improvement plan, and the Government formally issued draft directions to the Council on 12 November 2024.

Councillor Amy Lee, the Deputy Leader of the Labour Group, said that the report describes a suspicious and defensive administration, which refuses to accept constructive criticism. Staff who feel intimidated, who feel they will be marginalised if they make a challenge, concerns about a culture of cronyism and patronage, senior appointments not being made on merit, and a lack of engagement with key strategic partners who also deliver important services for our residents. These are just some of the problems that we have to solve to make this Council the best that it can be.

The Aspire Party proposed an amendment to the Labour Party motion, adding a clause acknowledging the positive aspects of the Best Value Inspection report. They also highlighted that in 2019, under the previous Labour administration, the lead member for Children's Services resigned as a result of a failed Ofsted inspection.

The Labour Party challenged the validity of the Aspire amendment, arguing that it included inaccurate information, particularly in relation to the value of unreconciled payments1 for adult social care contracts. The Labour Party asked for the amendment to be withdrawn. After a lengthy debate, and contributions from the Council's Chief Finance Officer and the Monitoring Officer, the Council decided to proceed with the Aspire amendment.

The Aspire amendment was accepted by the Council, and the Labour motion as amended was then approved.

Other Reports

The Council considered and approved the following reports:

  • Youth Justice Strategic Plan update, which reported on the delivery of the Youth Justice Strategic Plan 2024-2025, including positive progress in reducing the number of young people entering the criminal justice system for the first time, and developing a more child-centered approach to working with young offenders.
  • Polling Places Review, which recommended changes to some of the polling places used for elections in Tower Hamlets. The report was triggered by a statutory requirement to review polling places every five years, and considered responses from the public, disability groups and political parties.
  • Proportionality and Allocation of Places on Committees of the Council 2024/25, which considered the changes to the political balance of the Council, and the impact this will have on the membership of the Council's committees.
  • ER/VR Exit Payments, which sought approval for the early retirement and voluntary redundancy exit package for a member of staff.

  1. Unreconciled payments are payments that have been made by a council but for which the council does not yet have sufficient documentation to prove that they received the goods or services that they paid for.