Tower Hamlets Council passes budget with 4.99 per cent council tax rise

Tower Hamlets Council has passed their 2025 Budget including a 4.99% council tax rise, and investments in universal school uniform grants and an anti-crime task force.  

Tower Hamlets Council has passed its budget, which includes investments in education, social care and community safety, as well as a 4.99 per cent council tax increase. 

The council has invested £65million into the new budget, which will go towards new initiatives including a universal school uniform grant, free homecare and a Meals on Wheels service for vulnerable residents.

During a full council meeting on the evening of Wednesday 26 February, members voted for the budget and the Medium Term Financial Strategy (MTFS) for the next three years. 

Tower Hamlets Mayor Lutfur Rahman called the budget ‘ground-breaking’ and said the Council is investing a total of £184m in frontline services from 2022-2028.

Mr Rahman, from the Aspire Party, said: ‘We will now become the first council in the country to provide universal school uniform grants to alleviate the burden on cash-strapped families with household incomes of up to £50,350 – benefiting some 21,000 pupils who enter primary schools and subsequently secondary school.’.’

The budget also includes £1m in supporting people with Special Education Needs and Disabilities (SEND) as they transition into adulthood and an £8m Anti-Crime Task Force which includes a ‘state-of-the-art’ CCTV service and more Tower Hamlets Enforcement Officers (THEOs).

The Council has identified savings worth £24.3m for 2025-26, which includes around £6.5m of savings approved in last year’s budget. The biggest new saving in this year’s budget is £14m from a combination of reducing the amount spent on agency staff, and not filling certain job vacancies. The ‘realignment’ of the Service Budget Task Force will save £1.1m this year, while a contract change will see £800,000 saved from the administration of Freedom Passes, a scheme providing free or discounted travel for those over 66 or with an eligible disability.

Council tenants will also see a rent increase of 2.7 per cent from April 1, which follows a rent increase of 7.7 per cent in last year’s budget. Residents will also see a 4.99 per cent increase to their council tax – which is made up of a 2 per cent adult social care precept and a 2.99 per cent general council tax increase. Households with annual incomes of up to £50,350 will not need to pay the council tax increase, while those on the lowest incomes will pay no council tax at all.

During the meeting, opposition councillors from the Labour Party and the Green Party presented their amendments to the budget. Labour councillor Marc Francis argued the 2.99 per cent council tax increase was ‘ripping off’ residents, and said this element should be frozen.

Labour’s amendment included cancelling disabled parking fees and drawing down money from the Anti-Poverty Reserve Fund and investing it into local food banks. The borough’s only Green councillor, Nathalie Bienfait, said she would be abstaining from both the administration’s (Aspire) proposed budget and Labour’s amended budget.

Cllr Bienfait proposed increasing car parking charges depending on the cost of the land it’s on, as well as creating two community pots dedicated to women and disabled residents who will be able to make suggestions about improvements to their local area. Ultimately the budget passed with 22 votes in favour, 17 against and 3 abstentions.If you liked this read Council ‘unable’ to argue against Chinese Embassy proposal