Here is a summary of the Cabinet meeting of Tower Hamlets Council on 8 January 2025, where the main topics of discussion were the budget for 2025-26, the Medium Term Financial Strategy (MTFS) for 2025-28, and updates on youth justice and highways projects. The Cabinet approved the draft budget and MTFS, which included a council tax freeze for those earning less than £50,350, new investments in services, and a plan to achieve savings of £77 million. They also endorsed the Youth Justice Strategic Plan and noted the Highways and Transportation delivery report.

Budget and Medium Term Financial Strategy

The Cabinet considered the Budget Report 2025-26 and MTFS 2025-28, a comprehensive plan outlining the council's financial strategy for the next three years. Councillor Saied Ahmed, Cabinet Member for Resources and the Cost of Living, introduced the report, highlighting key aspects such as:

• A balanced budget for the next three years.
• A commitment to investing in the people of Tower Hamlets.
• Delivery of all earmarked savings from the previous year.
• An increase in the general fund reserve to £25 million, exceeding best practice guidance from the Chartered Institute of Public Finance and Accountancy[^1] (CIPFA). [^1]: The Chartered Institute of Public Finance & Accountancy (CIPFA) is the professional body for people in public finance.
• The continuation of key services such as the Education Maintenance Allowance[^2] (EMA), university bursaries, free school meals, and winter fuel payments. [^2]: An Education Maintenance Allowance (EMA) is a financial support package for 16-19 year olds from lower income households who wish to continue in education.
• A freeze on council tax for the next three years for those earning £50,350 or less.
• The launch of free home care for all residents in April 2025.
• Additional investment in CCTV and Tower Hamlets Enforcement Officers (THEOs).
• The reopening of a culturally sensitive women's centre and a drug rehabilitation facility.
• The reintroduction of one-hour free parking in markets.
• Continued investment in affordable housing.
• Introduction of a free school uniform payment for children entering reception and year 7, and reintroduction of meals on wheels.

The MTFS included an additional £54.9 million of new investment into frontline services and support for residents, as well as £77 million in savings without cuts in frontline services or compulsory redundancies.

Julie Lorraine, Corporate Director Resources, provided an overview of the risk management approach, noting that the budget required no reliance on reserves to fund recurring costs. She highlighted potential risks such as business rates reform and demand pressures in services like SEND¹, adult social care, and homelessness. Councillor Kabir Ahmed, Cabinet Member for Regeneration, Inclusive Development and Housebuilding, detailed the Housing Revenue Account (HRA) budget, including plans for new builds, acquisitions, and improvements to existing stock.

The cabinet approved the recommendations set out in the report, including:

• Proposing a draft 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 for 2025-26, while continuing the Council Tax Support Relief Fund for those with household incomes below £50,350.
• Maintaining the Local Council Tax Reduction Scheme unchanged for 2025-26.
• Increasing the General Fund Reserve to £25m.
• Approving HRA housing rent and service charge increases as outlined in the report.
• Agreeing to continue the National Schools Funding Formula (NSFF) for 2025-26 and setting the Minimum Funding Guarantee as close to 0.5% as affordable.
• Approving proposed discretionary and statutory fees and charges.

The Budget Report 2025-26 and MTFS 2025-28 was noted as a key decision.

Youth Justice Board Strategic Plan Update

The Cabinet reviewed the Youth Justice Board Strategic Plan Update Report, presented by Councillor Maium Talukdar, Deputy Mayor and Cabinet Member for Education and Lifelong Learning. The report provided an update on the progress made against the priorities set out in the Strategic Youth Justice Plan 2023-2025. Kelly Duggan, Head of Youth Justice and Partnerships, and Susannah Beasley-Murray, Director of Children’s Social Care (Supporting Families), highlighted key achievements, including:

• Strong governance arrangements and effective partnerships.
• Completion of the Child First UNITAS Award by 89% of Youth Justice Service staff.
• Implementation of a comprehensive training programme for staff.
• Recruitment of a Youth Justice Nurse and establishment of multi-disciplinary health teams.
• Increased speech and language provision.
• A reduction in first-time entrants to the criminal justice system.

The Cabinet noted that re-offending rates had increased, but that this was due to statistical anomalies caused by the success in reducing first time entrants.

The Cabinet endorsed the recommendations in the report, supporting the plan going forward.

Highways and Transportation Delivery

Councillor Shafi Ahmed, Cabinet Member for Environment and the Climate Emergency, presented a report on highways and transportation infrastructure improvements delivered in the past 12 months. Ashraf Ali, Interim Director of Public Realm, and Vincent Valerio, Group Manager Transportation, provided details on various projects, including:

• Safe crossing points and pedestrian improvements.
• Resident and business parking schemes.
• Greening projects, such as tree planting.
• Bromley by Bow improvements.
• Whitechapel Road improvements.

The report highlighted the collaborative approach undertaken by the Highways and Transportation service, working with elected members and other council services to deliver projects that meet the needs of the community.

Councillor Peter Golds, Chair of Licensing Committee, welcomed the prospect of road improvements on the Isle of Dogs.

The Cabinet noted the report.

Other Business

There were announcements regarding the launch of a new learning lab at the Watney Market Idea Store and the reopening of the Wapping Youth Centre following refurbishment.

The meeting concluded with a vote of thanks to all officers and members who had contributed to the reports.