To receive any apologies for absence.

Apologies for absence were received from Councillor Jahed Choudhury, Councillor Ayas Miah and Councillor Asma Begum.

The Speaker on behalf of members in the Chamber, congratulated Councillor Begum on the birth of her daughter and wished her and her family well.

Members are reminded to consider the categories of interest, identified in the Code of Conduct for Members to determine; whether they have an interest in any agenda item and any action they should take. For further details, see the attached note from the Monitoring Officer.

Members are also reminded to declare the nature of the interest at the earliest opportunity and the agenda item it relates to. Please note that ultimately it is the Members’ responsibility to identify any interests and also update their register of interests form as required by the Code.

If in doubt as to the nature of an interest, you are advised to seek advice prior to the meeting by contacting the Monitoring Officer or Democratic Services.

Ms Linda Walker, Monitoring Officer advised that the Standards Advisory Committee had agreed to a general dispensation to all Councillors in respect of matters relating to the Council Tax and also Housing where the Councillor (or spouse or partner) holds a tenancy or lease with the Council. She said the general dispensation also applied to the members allowance scheme to be discussed by Council at item 6. Members did not therefore have to declare a DPI in respect of these matters.

The Speaker of the Council, Councillor Saif Uddin Khaled stated that he would provide an update on his activities at the next ordinary meeting of the Council on 2nd April 2025.

Mr Steve Halsey, Chief Executive made a short announcement congratulating the Council for achieving the Local Government Association member learning and development Chartermark. He said significant effort had been made by members and officers. This was an important step in the Council’s improvement journey.

The Council Procedure Rules provide for a maximum of four petitions to be discussed at the Budget Council meeting providing the petitions relate to the Council’s Budget and Council Tax.

There are no petitions to be considered at this meeting.

There were no petitions listed for consideration for this meeting.

The Mayor Lutfur Rahman and Councillor Saied Ahmed, Cabinet Member for Resources and Cost of Living, moved the budget and council tax proposals of the Mayor and Executive as set out in the agenda pack, with Councillor Maium Talukdar, Deputy Mayor and Cabinet Member for Education, Youth and Lifelong Learning seconding the proposals.

Councillor Marc Francis moved the Labour group amendment set out in the supplementary agenda, which was seconded by Councillor Sirajul Islam. Councillor Nathalie Bienfait also moved her amendment which was seconded by Councillor Peter Golds.

Following debate, the amendments moved by Councillor Marc Francis and Councillor Nathalie Bienfait were put to a recorded vote and were rejected.

The substantive Budget for 2025-26, including the Council Tax Resolution, the Treasury Management Strategy and the Investment Statements as well as the Capital Strategy report submitted by Mayor Lutfur Rahman and Councillor Saied Ahmed were put to a recorded vote and were AGREED.

Council RESOLVED to:

Revenue 2025-28 and Capital 2025-28

1.     To approve a General Fund Revenue Budget of £484.908m and approve a Council Tax (Band D) of £1,264.19 (Council share) for 2025-26 as set out in the motion and Council Tax Resolution attached at Annex 1 to the report. This incorporates a 2.99% increase to the Tower Hamlets element of Council Tax and a 2% Adult Social Care precept for 2025-26.

2.     To note the GLA precept as set out in the Council Tax Resolution

3.     To note the change in the budget report appendices to reflect the final Local Government Finance Settlement grant allocation for the Children’s Social Care Prevention Grant, Public Health Grant and newly introduced Employer National Insurance Contribution Grant.

4.     To approve the Capital Programme, Housing Revenue Account budget, fees and charges and Dedicated Schools budget.

Treasury Management Strategy Statement, Investment Strategy and Capital Strategy 2025-26

5.     To adopt the Treasury Management Strategy Statement set out in Annex 3 Appendix A attached to the report.

6.     To adopt the Investment Strategy Report set out in Annex 3 Appendix B attached to the report.

7.     To adopt the Capital Strategy Report (which incorporates the Minimum Revenue Provision Policy Statement) set out in Annex 3 Appendix C attached to the report.

Section 25, Local Government Act 2003

8.     To note the Section 151 officer’s view on the robustness of estimates and adequacy of reserves required under Section 25 of the Local Government Act 2003, set out in section 2 of the report.

Local Council Tax Reduction Scheme (LCTRS)

9.     To note that the Local Council Tax Reduction Scheme will remain unchanged for 2025-26.

BUDGET COUNCIL

26 FEBRUARY 2025

COUNCIL TAX REQUIREMENT 2025-26

That Council:

1.     Approve the Council Tax Resolution, detailed in Appendix A to this decision sheet.

2.     Agree a General Fund revenue budget of £484.908m and a Council Tax Requirement for Tower Hamlets in 2025-26 of £148.077m.

3.     Agree the Council’s 2025-26 Budget Report and 2025-28 Medium Term Financial Strategy set out in Annex 2.

4.     Agree the Treasury Management Strategy  ...  view the full minutes text for item 5.

Council considered a report on Members’ Allowance Scheme 2025-26.

The report was moved Councillor Maium Talukdar and seconded by Councillor Kabir Ahmed.

Labour members abstained from voting. The recommendations were carried.

Council RESOLVED to:

1.     Review and confirm the Member Allowances Scheme for 2025/26 as attached at Appendix 1 and to confirm the decision last year that there would be no increase in the Allowances Scheme for 2025/26.

2.     To note the decision of Council on 20 March 2024 that there should be no uplift to the Scheme applied for 2024/25 (the current scheme year).

3.     Should it be required from any recommendations, agree that the Member Allowances Budget be adjusted as necessary to cover the costs following any agreed increases.

4.     To agree that the General Purposes Committee lead on any requested engagement with the London Independent Remuneration Panel, reporting back to Council as required.