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Budget Meeting, Council - Wednesday, 26th February, 2025 7.00 p.m.

February 26, 2025 View on council website Watch video of meeting
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Summary

The Council agreed to approve the 2025/26 budget report and the Medium Term Financial Strategy (MTFS) 2025-28. It was also agreed to adopt the Treasury Management Strategy Statement, Investment Strategy Report and Capital Strategy Report for 2025-26. The Member Allowance Scheme for 2025/26 was also approved.

Council Tax

The Council agreed to increase Council Tax by 4.99% for 2025/26. This is made up of a 2.99% increase in general Council Tax and a 2% increase in the Adult Social Care precept1.

The Labour Group proposed an amendment to freeze Council Tax. Councillor Marc Francis, who moved the amendment, said the Labour government had awarded the Council an additional £37.5 million in the last 8 months. He said:

Why on earth, then, does the Mayor and his Aspire party councillors need to raise council tax by a further 5% on top of the 5% that they already increased it last year?

Councillor Shiraj Alislam, leader of the Labour Group, seconded the amendment. He said:

Colleagues, in these challenging times when cost of living has soared and hard-working families are feeling the pitch, the last thing our residents need is a bigger council tax.

Councillor Kabir Ahmed said that Labour had increased Council Tax by 25% during their 7 years in administration, between 2015 and 2022.

Councillor Waheed Ali disputed Labour's claim that the Mayor had broken his promise not to increase Council Tax. He cited page 8 of the Mayor's 2022 manifesto, which pledged to freeze council tax for four years to protect the most poorest. He said the Council was fulfilling that pledge by ensuring Council Tax is frozen for all households with an annual income of less than £50,350. He said:

This is exactly what this budget is doing. It's looking to protect the most poorest.

The amendment was voted down.

Councillor Natalie Bien-Aime abstained on the vote. She said:

I accept the finance officer's advice that we need to keep in place with inflation, but this is happening at the same time as everything else is going up. I cannot support it.

Food Hubs

Mayor Lutfur Rahman2 said he was extremely disappointed to learn that funding for Food Hubs had been reduced since he took office. He said that he increased the funding when he was first elected in 2022, but that he had been wrongly informed that the funding had not changed. He committed to restoring the funding to its previous level.

Councillor Marc Francis, for the Labour Group, said he was really pleased that the Mayor had restored the funding.

The Labour Group's amendment proposed guaranteeing the Food Hub funding at £400,000 every year. The amendment also proposed cancelling the planned charges for disabled parking permits, halving the fee for the Wapping Bus Gate and completing the rebuild of George Green's Secondary School.

Home Care

The budget proposes making Tower Hamlets the second local authority in the country to offer free home care. Councillor Goulam Kibriya Choudhury said this was a reversal of the Labour Administration's decision to cut funding for home care by £1.1 million, a decision he said introduced charging for home care in Tower Hamlets for the first time.

Free School Uniforms

The budget proposes introducing a new scheme to provide all students entering primary and secondary school, from households earning less than £50,350, with a grant for school uniforms. Primary school children would be entitled to £50, and secondary school children would receive £150.

Councillor Amina Ali expressed concerns about the affordability of the scheme. She said:

£50,000 doesn't get you far today. And that still is a big burden for people who are working and inspired to be earning that kind of money.

Waste Services

Councillor Shafi Ahmed said that since 2022 the Aspire administration had increased the Waste Services budget to £14 million. He said:

We understand how crucial clean streets are, and the well-being of our residents, and we are committed to improving our waste services.

Councillor Lutfur Rahman said that the previous Labour administration left our streets filthy and forced us to declare a waste emergency.

The budget proposes further increasing investment in waste services by £15 million over the next 3 years.

The Overview and Scrutiny Committee expressed concerns about this level of spending and requested further information about how the investment would be used. They also asked how the spending would achieve long-term sustainability and if it would lead to future savings.

Best Value

Councillor Sabina Khan defended the budget's proposed £6 million investment in Best Value improvement schemes. She said:

It's hypocritical to say the least. After months of calling for outside intervention into the Council, they choose to attack the Mayor's budget for taking into consideration the very improvement the envoys recommended.

Councillor Marc Francis subsequently pointed out that this was untrue. Steve Halsey, Chief Executive of the Council, confirmed that the government envoys had not recommended these posts.

Councillor Mark Francis questioned the Mayor's judgment. He said:

And this meeting started with a claim by the mayor that he was misled about the cuts to the food hub budget. So twice in the space of the first half hour of this meeting, apparently members in the Aspire party are being misled. Who are they being misled by, Mr Speaker? By officers or by themselves? What's going on here?


  1. The Adult Social Care precept is a charge on Council Tax, introduced in 2016, to allow local councils to raise money to pay for social care for adults. 

  2. Lutfur Rahman is the directly elected Mayor of Tower Hamlets. He was previously the Mayor between 2010 and 2015. 

Attendees

Profile image for Councillor Faroque Ahmed
Councillor Faroque Ahmed  Labour Party •  Whitechapel
Profile image for
 (Cabinet Member for Regeneration, Inclusive Development and Housebuilding) •  Aspire •  Weavers
Profile image for Councillor Leelu Ahmed
Councillor Leelu Ahmed  Labour Party •  Mile End
Profile image for
 (Cabinet Member for Jobs, Enterprise, Skills and Growth) •  Aspire •  Bethnal Green West
Profile image for Councillor Ohid Ahmed
Councillor Ohid Ahmed  Independent •  Lansbury
Profile image for
 (Cabinet Member for Resources and the Cost of Living) •  Aspire •  Canary Wharf
Profile image for
 (Cabinet Member for Environment and the Climate Emergency) •  Aspire •  Whitechapel
Profile image for Councillor Suluk Ahmed
Councillor Suluk Ahmed  Aspire •  Spitalfields & Banglatown
Profile image for Councillor Sabina Akhtar
Councillor Sabina Akhtar  Aspire •  Stepney Green
Profile image for Councillor Amina Ali
Councillor Amina Ali  Labour Party •  Bow East
Profile image for Councillor Asma Begum
Councillor Asma Begum  Labour Party •  Bow West
Profile image for Councillor Maisha Begum
Councillor Maisha Begum  Labour Party •  St Dunstan's
Profile image for Councillor Nathalie Bienfait
Councillor Nathalie Bienfait  Scrutiny Lead for Environment and the Climate Emergency •  Green Party •  Bow West
Profile image for Councillor Mufeedah Bustin
Councillor Mufeedah Bustin  Chair of Audit •  Labour Party •  Island Gardens
Profile image for Councillor Bodrul Choudhury
Councillor Bodrul Choudhury  Scrutiny Lead for Housing and Regeneration •  Aspire •  Bromley South
Profile image for
 (Cabinet Member for Health, Wellbeing and Social Care) •  Aspire •  Poplar
Profile image for Councillor Jahed Choudhury
Councillor Jahed Choudhury  Chair of Strategic Development •  Independent •  Lansbury
Profile image for
 (Cabinet Member for Safer Communities) •  Aspire •  Bethnal Green West
Profile image for Councillor Mohammad Chowdhury
Councillor Mohammad Chowdhury  Labour Party •  Mile End
Profile image for Councillor Marc Francis
Councillor Marc Francis  Labour Party •  Bow East
Profile image for Councillor Peter Golds
Councillor Peter Golds  Chair of Licensing Committee •  Conservative •  Island Gardens
Profile image for Councillor Iqbal Hossain
Councillor Iqbal Hossain  Chair of Development Committee •  Aspire •  Lansbury
Profile image for Councillor Kabir Hussain
Councillor Kabir Hussain  Independent •  Spitalfields & Banglatown
Profile image for
 (Cabinet Member for Culture and Recreation) •  Aspire •  Whitechapel
Profile image for Councillor Shahaveer Shubo Hussain
Councillor Shahaveer Shubo Hussain  Labour Party •  Bromley South
Profile image for Councillor Asma Islam
Councillor Asma Islam  Chair of Overview and Scrutiny •  Labour Party •  Weavers
Profile image for Councillor Sirajul Islam
Councillor Sirajul Islam  Leader of the Opposition •  Labour Party •  Bethnal Green East
Profile image for Councillor Ahmodul Kabir
Councillor Ahmodul Kabir  Aspire •  Bethnal Green East
Profile image for Councillor Saif Uddin Khaled
Councillor Saif Uddin Khaled  Speaker of the Council •  Independent •  Bromley North
Profile image for Councillor Ahmodur Khan
Councillor Ahmodur Khan  Scrutiny Lead for Resources •  Aspire •  Blackwall & Cubitt Town
Profile image for Councillor Sabina Khan
Councillor Sabina Khan  Aspire •  Mile End
Profile image for Councillor James King
Councillor James King  Labour Party •  Limehouse
Profile image for Councillor Amy Lee
Councillor Amy Lee  Labour Party •  St Katharine's & Wapping
Profile image for Councillor Abdul Malik
Councillor Abdul Malik  Chair of Human Resources Committee •  Aspire •  Blackwall & Cubitt Town
Profile image for Councillor Abdul Mannan
Councillor Abdul Mannan  Scrutiny Lead for Children and Education •  Aspire •  Bromley North
Profile image for Councillor Ana Miah
Councillor Ana Miah  Chair of Pensions Committee •  Aspire •  Shadwell
Profile image for Councillor Ayas Miah
Councillor Ayas Miah  Independent •  St Dunstan's
Profile image for Councillor Harun Miah
Councillor Harun Miah  Aspire •  Shadwell
Profile image for Councillor Abdi Mohamed
Councillor Abdi Mohamed  Scrutiny Lead for Community Safety •  Labour Party •  Bow East
Profile image for Councillor Amin Rahman
Councillor Amin Rahman  Aspire •  Bethnal Green West
Profile image for Mayor Lutfur Rahman
Mayor Lutfur Rahman  (Executive Mayor) •  Aspire
Profile image for Councillor Rebaka Sultana
Councillor Rebaka Sultana  Chair of General Purposes •  Labour Party •  Bethnal Green East
Profile image for
 (Deputy Mayor and Cabinet Member for Education, Youth and Lifelong Learning (Statutory Deputy Mayor)) •  Aspire •  Canary Wharf
Profile image for Councillor Bellal Uddin
Councillor Bellal Uddin  Scrutiny Lead for Adults and Health Services •  Aspire •  Blackwall & Cubitt Town
Profile image for Councillor Abdal Ullah
Councillor Abdal Ullah  Labour Party •  St Katharine's & Wapping
Profile image for
 (Cabinet Member for Customer Service, Equalities and Social Inclusion) •  Aspire •  Stepney Green

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