Excerpt of Tower Hamlets Council meeting held on 8 January 2025 (AI Generated Summary).
Budget report 2025-26 and medium-term financial strategy 2025-28
Mayor Rahman began the discussion on the Budget Report 2025-26 and MTFS 2025-28 by making a statement about the proposed budget for 2025-2026 and the MTFS 2025-2028.
The Mayor described the budget as balanced for the next three years and made the point that despite the financial challenges of the last seven years financial prudency and sensibility does not need to come at the expense of cuts in frontline services. He contrasted this approach to that of the previous administration and described their cuts as political choices, not financial necessities.
He explained that the budget has secured a balanced position across the medium term with earmarked savings of £43.4 million over the next three years. He also stated that it exceeded its savings target and reiterated the findings of the government’s best value inspection of this Council that recognises the strength and robustness of our Council’s finances. He explained that this financial strength meant that as well as continuing to deliver the existing services, the budget included additional services without having to dip into reserves or creating a hole in our finances.
The Mayor outlined some of the highlights of the budget, focusing on investment in local services and initiatives that directly benefit residents.
These include:
The continuation of the £600 Educational Maintenance Allowance (EMA) for students across the borough.
The continuation of University Bursaries, at a value of £1,500 each, to enable young people from the borough to continue with their education at universities.
Continued investment of nearly £14 million per year into Young Tower Hamlets.1
The continuation of free school meals for all primary and secondary school pupils.
Investment in and enhancement of insourced leisure services.
The introduction of free swimming for women and girls aged 16 and above, and for men aged 55 and above.
The continuation of the Winter Fuel payments scheme.
Investment of an additional £14 million into waste services over the next three years.
The continuation of the council tax freeze for households earning less than £50,350.
The launch of the free home care scheme in April 2025.
The continuation of the reinvestment programme in CCTV cameras and the recruitment of 44 more Enforcement Officers.
The reopening of a culturally sensitive women’s centre.
The reopening of a culturally sensitive drug rehabilitation facility.
The reopening and strengthening of the five one-stop shops (resident hubs) across the borough.
The reintroduction of one hour free parking for market customers.
Continued investment in the accelerated delivery of thousands of affordable homes.
The Mayor also announced two new policies:
A free school uniform payment scheme for reception class starters and year 7 starters for parents earning less than £50,350. The payment would be £50 for reception class starters and £150 for year 7 starters and would be available to some 7,000 children per year.
The reintroduction of the meals on wheels scheme for elderly residents.
The Mayor stated that these policies meant that the total investment per year in young people alone in Tower Hamlets is over £25 million, adding No other authority in the country, I think, can match this kind of aspiration for our youngsters that we have in our borough.
Councillor Saied Ahmed, the Cabinet Member for Resources and the Cost of Living, described the budget as an excellent MTFS that has a balanced position over its three-year period, funds the council’s priorities and has no adverse impact on frontline services. He said it is a forward-looking budget that clears all legacy issues faced by the council since the administration took office in May 2022.
He also said that to help mitigate risk, a new £5 million contingency has been created and the general fund reserve would be increased to £25 million.
Julie Lorraine, Corporate Director of Resources (Section 151 Officer), described the budget as a “great plan” and “a great budget” that is “all focused on delivery”. She said that although the council has made provision for known risks, we are not psychic and that unforeseen events could present a significant risk for the council.
She said that the key risks are national issues, including:
The government’s recently announced fund and reform consultation, which includes business rates reform.
The impact on the council’s finances of the business rates appeals system, especially those by huge, significant businesses whose base is changing.
The demand pressures on services for a highly dense population, particularly those in adult social care, SEND, and homelessness.
The Dedicated Schools Grant (DSG) deficit, currently standing at £18.5 million for the borough.
Inflation and pay awards.
She highlighted the council’s response to the Best Value Inspection (BVI), explaining that although the council’s finances were considered strong, the inspection highlighted that embedding the relevant elements of the one-off waste improvement investment of £5 million and the additional £1.9 million allocated to the housing options service would result in an underlying budget pressure of £7 million. She explained that this budget makes provision to fully address both issues, including:
Continued investment in the waste service.
Continued investment in the housing options service.
No reliance on reserves to fund recurring costs.
A reduction in the council’s reliance on income generation to just 2% of the savings presented.
Setting aside £6 million to fund improvements highlighted in the BVI.
Increasing the minimum reserve balances and building in a £5 million resilience contingency.
Councillor Maium Talukdar, Deputy Mayor and Cabinet Member for Education, Youth and Lifelong Learning, said the budget was a people’s budget that puts over £150 million into the resident’s pocket.
Councillor Musthak Ahmed, Cabinet Member for Jobs, Enterprise, Skills and Growth, said the budget was a bold and compassionate plan designed to prioritise and uplift the most vulnerable residents in our community. He said it was a progressive, inclusive approach to governance that addresses critical issues with compassion and foresight. He particularly highlighted the budget’s focus on SEN.
Councillor Abdul Wahid, Cabinet Member for Customer Service, Equalities and Social Inclusion, described the budget as “a balanced budget” and “a robust budget” and applauded the Mayor’s delivery of manifesto pledges. He also highlighted the reopening of youth clubs, the insourcing of leisure facilities, the continuation of EMA and University bursaries, and the additional support for reception class starters and year 7 starters. He said cuts is a political choice, but we understand and we know the needs of our community and I’m proud to sit here and support this budget.
Councillor Kabir Ahmed, Cabinet Member for Regeneration, Inclusive Development and Housebuilding, applauded the work of officers and the mayor and focused on the Housing Revenue Account (HRA). He explained that this element of the budget includes:
Funding for 46 new build programmes to deliver thousands of homes.
Funding for a 237 homes acquisition programme.
A headroom of nearly 75 million pounds for new pipeline programmes.
£140 million allocated over a five-year period to support repairs and regulatory improvements on existing homes.
£1.9 million for housing options service.
He highlighted that these interventions are important for residents, explaining that “the crux of this also impacts on daily lives of residents”.
Councillor Khubilya Choudhury, Cabinet Member for Health, Well-Being and Social Care, described the budget as a big step forward, highlighting that Tower Hamlets will be “the first council in the UK to bring back the free home careand the support provided foradults with learning disabilities, helping them to thrive and gain independence”.
Councillor Shafi Ahmed, Cabinet Member for Environment and the Climate Emergency, applauded the hard work of the mayor, fellow councillors and officers in delivering a sustainable and balanced budget which he described as a showcase or a benchmark for other councils to follow. He highlighted the vision of the Mayor for children and young people, particularly the provision of free uniforms, free school meals and the introduction of free home care.
Councillor Abu Chowdhury, Cabinet Member for Safer Communities, thanked the officers and fellow Cabinet members for their hard work in drafting the budget, describing it as a year of hard work from across everyone in this chamber. He highlighted the holistic approach it takes to addressing crime and poverty in the borough and outlined the budget’s investment in the following:
A new specialist drugs unit.
Additional investment in CCTV.
Expansion of the Council Enforcement Officer team.
The reintroduction of meals on wheels.
New energy and fuel grants.
Expanded support for children and adults with learning disabilities.
Steve Stranvey, Chief Executive, thanked officers and members for their contributions to the budget and highlighted its impact on other London boroughs, saying that he is contacted about us sharing this best practice through the offices of the Corporate Director of Resources and her team to other authorities that would benefit from learning from our expertise and the way in which this budget has been delivered.
This is the third budget to be overseen by Mayor Rahman since he returned to office in May 2022, after being banned from holding elected office for five years following a finding by an Election Commissioner in 2015 that he had been guilty of corrupt and illegal practices. In his statement on the budget, the Mayor claimed that the Best Value Inspection had recognised the strength and robustness of the council’s finances.
This summary is provided by Open Council, which uses AI-generated summaries to ensure that journalism fulfils its role in informing the public of the activities of government.
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