The Tower Hamlets Cabinet meeting on Wednesday, 31 January 2024, focused heavily on the council's budget for the upcoming financial year, including a proposed council tax increase and significant investment in various community services. Key decisions included the approval of the budget, the medium-term financial strategy, and associated fees and charges, alongside plans to procure over 2,000 electric vehicle charging points and progress the Redcoat Estate redevelopment.

Council Tax and Budget Approval

The council's budget for 2024-25 and the medium-term financial strategy (MTFS) for 2024-27 were approved, alongside associated fees and charges for the Housing Revenue Account (HRA). A general council tax increase of 2.99% was agreed, with an additional 2% precept for adult social care, resulting in a total potential rise of 4.99%. Mayor Lutfur Rahman stated that households earning less than £49,500 would not be impacted by the increase, with approximately 28,000 households exempt from any rise and a further 19,000 not paying any increase. This approach was framed as taxing the rich to support the needy and to fund essential services and investments. Councillor Sirajul Islam, Leader of the Opposition, questioned the increase in light of the Mayor's manifesto pledge not to raise council tax, while Councillor Saied Ahmed, Cabinet Member for Resources and the Cost of Living, detailed the council's efforts to protect low-income households and highlighted that the average increase for those above the threshold would be 66p per week. The budget was described as ambitious, responsible, and laying foundations for sustainability, with savings identified exceeding the target by £40 million and a reduction in the use of reserves by £19 million over the MTFS period.

Investment in Young People and Community Services

Significant investment in young people was a prominent theme, with over £22 million allocated. This includes continuing the Mayor's Education Maintenance Allowance and University Bursary Scheme, and increasing the EMA from £400 to £600 per student, benefiting 1,250 children. Free swimming sessions will be offered to women and girls over 16 and men over 55. The council also committed to reintroducing the community language service with an £800,000 allocation and bringing back the NAFAS drug project. Funding has been set aside to re-establish the Jagannari project for Bangladeshi women and to develop a resource project for the Somali community at Granby Hall. The council also plans to reopen St. George's Leisure Centre and deliver 33 new council homes.

Infrastructure and Environmental Improvements

A major initiative to install over 2,000 electric vehicle (EV) charging points across the borough was approved, aligning with the manifesto pledge to increase such facilities and improve air quality. The report detailed that these charging points would be installed by companies bearing the installation costs and paying ongoing fees to the council. The Redcoat Estate redevelopment was also advanced, with decisions made regarding land transfer and overriding third-party rights to expedite the delivery of 407 new homes, including 180 affordable homes, and a new community centre and mosque. An additional £5 million has been allocated in the budget for street cleaning.

Governance and Past Administration's Record

Mayor Lutfur Rahman used the meeting to address criticisms from the opposition, detailing what he described as the litany of failures of the previous Labour administration. He highlighted issues such as unsigned and unaudited council accounts for six years, costing £2 million to rectify, and alleged double payments of public money to care providers between £1.7 million and £7 million in 2017. He also pointed to a failure to adopt clear policies for annual governance statements for five years, a failure to deliver savings proposals, and an inadequate education service following a failed Ofsted review. The Mayor also criticised the previous administration for presiding over a dysfunctional capital programme, lending £87 million to other councils during the cost of living crisis, cutting the Education Maintenance Allowance and University Bursary Scheme, and closing One Stop Shops and the New Market Idea Store library.

Other Discussions and Decisions

The meeting also saw the approval of the contract forward plan, with a note of withdrawal for one item related to rooftop new homes. The Corporate Equalities Plan for 2024-2026 was introduced, outlining a framework to address inequalities and ensure the workforce reflects the community, including the establishment of a dedicated resource centre for women and a commission to improve outcomes for women, as well as support for the Somali community. A proposal to extend the licence for AAG to host events at Victory Park for three years was approved, aiming to increase income for park maintenance and benefit the local economy. The council also received an award for its Excellence in Food School Award for school meals and the Petticoat Lane Food Court was awarded Best Small Speciality Market by the National Association of British Market Authorities. Steve Reddy was welcomed as the new Interim Corporate Director of Children's Services.