The Cabinet of Tower Hamlets Council met on Wednesday, 8 January 2025, to discuss and approve the draft budget for 2025-26 and the Medium Term Financial Strategy for 2025-28. Key decisions included proposing a General Fund Revenue Funding Requirement of £484.136m for 2025-26, levying a 2% Adult Social Care precept and a 2.99% increase on the general Council Tax element, and approving housing rent and service charge increases. The Cabinet also noted progress on the Youth Justice Strategic Plan 2024-2025 and endorsed it going forward, and noted a report on Highways & Transportation delivery spotlight – traffic scheme improvements.

Budget Report 2025-26 and Medium Term Financial Strategy 2025-28

The Cabinet approved a draft General Fund Revenue Funding Requirement of £484.136m for 2025-26. This includes a proposed 2% Adult Social Care precept and a 2.99% increase on the general Council Tax element. To mitigate the impact on vulnerable residents, the Council will continue its Council Tax Support Relief Fund and increase the qualifying household income ceiling to £50,350. The Local Council Tax Reduction Scheme will remain unchanged.

The Cabinet also approved increases to Housing Revenue Account (HRA) rents and service charges. Housing rents for all properties will increase by 2.7% for 2024-25 (CPI +1%), and service charges by 1.7% (CPI). The Council also agreed to continue with the National Schools Funding Formula adopted in 2019-20 for 2025-26, with factor values adjusted in line with the formula. The Minimum Funding Guarantee for schools will be set as close to 0.5% as affordable.

Furthermore, the Cabinet approved proposed discretionary and statutory fees and charges, as well as charges relating to the Housing Revenue Account. The Corporate Director Resources, in consultation with the Mayor and Cabinet Member for Resources & Cost of living, was authorised to make any necessary changes to the draft budget following receipt of the Final Local Government Finance Settlement. The General Fund Reserve will be increased to £25m to meet Chartered Institute of Finance and Accountancy (CIPFA) best practice guidance.

Youth Justice Board Strategic Plan Update Report

The Cabinet noted the progress and achievements made in respect of the Youth Justice Strategic Plan 2024-2025 and endorsed the plan going forward. The report highlighted significant achievements, including 89% of Youth Justice Service staff completing the Child First UNITAS Award, the development of practice guidance around language, and the commissioning of Wipers CIC for the Ether Programme and a Social Enterprise offer. The service has also seen a 41% reduction in first-time entrants to the formal criminal justice system since 2021-22. While re-offending rates have seen a statistical increase, the number of individual children re-offending has reduced. The report also detailed the characteristics of the children engaged with the service, noting a higher representation of boys aged 16-18 and those identifying as mixed heritage or white among the reoffending cohort.

Highways & Transportation delivery spotlight – traffic scheme improvements

The Cabinet noted the report detailing the key achievements and successes in highways and transportation infrastructure improvements delivered over the past 12 months. The report showcased schemes delivered, highlighted successful collaborative working, and discussed next steps for embedding a delivery culture within the service. Notable achievements included the delivery of over 50 schemes across the borough with a total investment exceeding £10 million, encompassing safe crossing points, pedestrian improvements, resident and business parking, and support for the council's greening projects such as tree planting. Specific projects mentioned included improvements on Barnado Street, Marsh Wall, Orchard Place, and Plumbers Row, as well as the ongoing work on the Whitechapel Road Improvement Programme and the electrification of the council's fleet. The report also detailed progress on the Mayor's pledge to provide 1,000 additional parking spaces, with 775 already delivered. Collaborative efforts with the Greening team for Sustainable Urban Drainage Schemes and tree planting were also highlighted, with over 1,400 trees planted to date.

The meeting also included announcements from the Mayor regarding the launch of the Idea Store learning lab and the opening of the Wapping Youth Centre. The Mayor also made a statement regarding the budget report, outlining the administration's commitment to financial prudence without compromising frontline services.

The meeting was held at the Town Hall, Whitechapel.