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Agenda item

BUDGET AND COUNCIL TAX 2023/24

Minutes:

Mayor Lutfur Rahman moved, the budget and council tax proposals of the Mayor and Executive as set out in the agenda pack and the Aspire Group’s amendment set out in the supplementary agenda. Councillor Saied Ahmed seconded the proposals.

Councillor Marc Francis moved the Labour group amendment set out in the supplementary agenda, which was seconded by Councillor Sirajul Islam. Amendments proposed by Councillor Nathalie Bienfait for the Greens and Councillor Peter Golds, for the Conservatives were also considered who seconded each other’s amendments.

Following debate, the amendments moved by Councillors Marc Francis, Nathalie Bienfait and Peter Golds were put to a recorded vote and were rejected. The substantive Budget for 2023-24, including the administration amendment, the Council Tax Resolution and the Treasury Management Strategy and Investment Statements and the Capital Report submitted by Mayor Lutfur Rahman were put to a recorded vote and were agreed.

RESOLVED:

Budget Motion:

Revenue 2023-26 and Capital 2023-26

1. To note a General Fund Revenue Budget of £446.205m and approve a Council Tax (Band D) of £1,146.88 (Council share) for 2023-24 as set out in the motion and Council Tax Resolution attached at Annex 1 to this report. This incorporates a freeze to the Tower Hamlets element of Council Tax and to only levy a 2% Adult Social Care precept for 2023-24.

2. To note the GLA precept as set out in the Council Tax Resolution is subject to the approval of the GLA Assembly at their meeting scheduled for 23 February, any changes as a result of that meeting will be made known to Council before the date of this meeting.

3. To note the change in the budget report appendices to reflect the final Local Government Finance Settlement grant allocation for the Services Grant which was increased by £0.178m (Annex 2 Appendix 1A, 1B, 2 and 6).

4. To note the Capital Programme, Housing Revenue Account budget and Dedicated Schools budget. Treasury Management Strategy Statement, Investment Strategy and Capital Strategy 2023-24

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

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

Local Council Tax Reduction Scheme (LCTRS)

9. To note that the Local Council Tax Reduction Scheme will remain unchanged for 2023-24.

Administration budget amendment – Full Council 1 March 2023

This Council notes:

1. The draft budget considered by Cabinet on 25 January 2023 included the following two savings proposals:

2. The administration has further considered the Re-commissioning Hostel Support saving and believes that the commissioning strategy will need to be thoroughly reviewed during 2023. To allow for this review, it is proposed that the £50k saving initially proposed for 2023-24 is removed from the Re-commissioning Hostel Support saving and added into the Council-wide efficiencies saving.

3. This does not alter the total sum of proposed savings and therefore does not impact the overall balanced budget or planned use of reserves. The revised savings would become:

This Council Resolves:

1. That the £50k saving for 2023-24 is removed from the Re-commissioning Hostel Support saving and added into the Council-wide efficiencies saving.

BUDGET COUNCIL

1 MARCH 2023

COUNCIL TAX REQUIREMENT 2023-24

That Council:

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

2. Agree a General Fund revenue budget of £446.205m and a Council Tax Requirement for Tower Hamlets in 2023-24 of £129.541m.

3. Agree the Council’s 2023-24 Budget Report and 2023-26 Medium Term Financial Strategy set out in Annex 2.

4. Agree the Treasury Management Strategy Statement, Investment Strategy Report and Capital Strategy Report for 2023-24 set out in Annex 3.

Appendix A

LONDON BOROUGH OF TOWER HAMLETS

COUNCIL 1 MARCH 2023

COUNCIL TAX RESOLUTION

1. That the revenue estimates for 2023-24 be approved.

2. That it be noted that, at its meeting on 4 January 2023, Cabinet agreed 112,950 as its Council Tax base for the year 2023-24 [Item T in the formula in Section 31B of the Local Government Finance Act 1992, as amended (the “Act”)]

3. That the following amounts be now calculated by the council for the year 2023-24 in accordance with Section 31 to 36 of the Local Government Finance Act 1992 as amended and the Local Authorities (Alteration of Requisite Calculations) (England) Regulations 2011:

a)	£1,428,682,281	Being the aggregate of the amounts which the council estimates for the items set out in Section 31A(2) of The Act. [Gross Expenditure]
b)	£1,299,142,185	Being the aggregate of the amounts which the Council estimates for the items set out in Section 31A(3) of The Act. [Gross Income]
c)	£129,540,096	Being the amount by which the aggregate at 3(a) above exceeds the aggregate at 3(b) above, calculated by the Council, in accordance with Section 31A(4) of The Act, as its council tax requirement for the year. (Item R in the formula in Section 31B of The Act). [Council Tax Requirement]
d)	£1,146.88	Being the amount at 3(c) above (Item R), all divided by Item T (2 above), calculated by the Council, in accordance with Section 31B(1) of The Act, as the basic amount of its Council Tax for the year. [Council Tax]

4. Being the amount given by multiplying the amount at 3(d) above by the number which, in the proportion set out in Section 5(1) of The Act, is applicable to dwellings listed in a particular valuation band divided by the number which in that proportion is applicable to dwellings listed in valuation band D, calculated by the Council, in accordance with Section 36(1) of The Act, as the amount to be taken into account for the year in respect of categories of dwellings listed in different valuation bands. Tower Hamlets Council Tax:

Band A	Band B	Band C	Band D	Band E	Band F	Band G	Band H
£764.59	£892.01	£1,019.45	£1,146.88	£1,401.75	£1,656.60	£1,911.47	£2,293.76

5. That it be noted that for the year 2023-24 the Greater London Authority (GLA) has stated the following amounts in precepts issued to the council, in accordance with Section 40 of the Local Government Finance Act 1992, for each of the categories of dwellings shown below:

Band A	Band B	Band C	Band D	Band E	Band F	Band G	Band H
£289.43	£337.66	£385.90	£434.14	£530.62	£627.09	£723.57	£868.28

6. That, having calculated the aggregate in each case of the amounts at 4 and 5 above, the council, in accordance with Section 30(2) of the Local Government Finance Act 1992, hereby sets the following amounts as the amounts of Council Tax for the year 2023-24 for each of the categories of dwellings shown below:

Band A	Band B	Band C	Band D	Band E	Band F	Band G	Band H
£1,054.02	£1,229.67	£1,405.35	£1,581.02	£1,932.37	£2,283.69	£2,635.04	£3,162.04

7. That the council hereby determines in accordance with Section 52ZB of the Local Government Finance Act 1992, that its relevant basic amount of Council Tax for 2023-24 is not excessive in accordance with the principles approved by the Secretary of State under Section 52ZC of the Local Government Finance Act 1992. As the billing authority, the council has not been notified by a major precepting authority that its relevant basic amount of Council Tax for 2023-24 is excessive and that the billing authority is not required to hold a referendum in accordance with Section 52ZK of the Local Government Finance Act 1992.

Results of Vote on Amendment moved by Mayor Lutfur Rahman (Aspire Group)
Mayor Lutfur Rahman	For
Councillor Sirajul Islam	For
Councillor Faroque Ahmed	For
Councillor Kabir Ahmed	For
Councillor Leelu Ahmed	For
Councillor Musthak Ahmed	For
Councillor Ohid Ahmed	For
Councillor Saied Ahmed	For
Councillor Suluk Ahmed	For
Councillor Sabina Akhtar	For
Councillor Amina Ali	Online – Couldn’t vote
Councillor Asma Begum	For
Councillor Maisha Begum	For
Councillor Nathalie Bienfait	Abstain
Councillor Rachel Blake	For
Councillor Mufeedah Bustin	Abstain
Councillor Bodrul Choudhury	For
Councillor Gulam Kibria Choudhury	For
Councillor Jahed Choudhury	For
Councillor Abu Chowdhury	For
Councillor Mohammad Chowdhury	Online – Couldn’t vote
Councillor Marc Francis	For
Councillor Peter Golds	For
Councillor Iqbal Hossain	For
Councillor Kabir Hussain	For
Councillor Kamrul Hussain	For
Councillor Shubo Hussain	For
Councillor Asma Islam	For
Councillor Ahmodul Kabir	For
Councillor Saif Uddin Khaled	For
Councillor Ahmodur Khan	For
Councillor Sabina Khan	For
Councillor James King	Abstain
Councillor Amy Lee	Abstain
Councillor Abdul Malik	For
Councillor Abdul Mannan	For
Councillor Ana Miah	For
Councillor Ayas Miah	For
Councillor Harun Miah	For
Councillor Amin Rahman	For
Councillor Rebeka Sultana	For
Councillor Maium Talukdar	For
Councillor Bellal Uddin	For
Councillor Abdal Ullah	Abstain
Councillor Abdul Wahid	For
Councillor Shafi Ahmed (Speaker of the Council)	For
RESULT	CARRIED

Results of Vote on Amendment moved by Councillor Marc Francis (Labour Group)
Mayor Lutfur Rahman	Against
Councillor Sirajul Islam	For
Councillor Faroque Ahmed	For
Councillor Kabir Ahmed	Against
Councillor Leelu Ahmed	For
Councillor Musthak Ahmed	Against
Councillor Ohid Ahmed	Against
Councillor Saied Ahmed	Against
Councillor Suluk Ahmed	Against
Councillor Sabina Akhtar	For
Councillor Amina Ali	Online – Couldn’t vote
Councillor Asma Begum	For
Councillor Maisha Begum	For
Councillor Nathalie Bienfait	For
Councillor Rachel Blake	For
Councillor Mufeedah Bustin	For
Councillor Bodrul Choudhury	Against
Councillor Gulam Kibria Choudhury	Against
Councillor Jahed Choudhury	Against
Councillor Abu Chowdhury	Against
Councillor Mohammad Chowdhury	Online – Couldn’t vote
Councillor Marc Francis	For
Councillor Peter Golds	Abstain
Councillor Iqbal Hossain	Against
Councillor Kabir Hussain	Against
Councillor Kamrul Hussain	Against
Councillor Shubo Hussain	For
Councillor Asma Islam	For
Councillor Ahmodul Kabir	Against
Councillor Saif Uddin Khaled	Against
Councillor Ahmodur Khan	Against
Councillor Sabina Khan	For
Councillor James King	For
Councillor Amy Lee	For
Councillor Abdul Malik	Against
Councillor Abdul Mannan	Against
Councillor Ana Miah	Against
Councillor Ayas Miah	For
Councillor Harun Miah	Against
Councillor Amin Rahman	Against
Councillor Rebeka Sultana	For
Councillor Maium Talukdar	Against
Councillor Bellal Uddin	Against
Councillor Abdal Ullah	For
Councillor Abdul Wahid	Against
Councillor Shafi Ahmed (Speaker of the Council)	Against
RESULT	FALLS

Results of Vote on Amendment moved by Councillor Nathalie Bienfait (Green)
Mayor Lutfur Rahman	Against
Councillor Sirajul Islam	Abstain
Councillor Faroque Ahmed	Abstain
Councillor Kabir Ahmed	Against
Councillor Leelu Ahmed	Abstain
Councillor Musthak Ahmed	Against
Councillor Ohid Ahmed	Against
Councillor Saied Ahmed	Against
Councillor Suluk Ahmed	Against
Councillor Sabina Akhtar	Abstain
Councillor Amina Ali	Online – Couldn’t vote
Councillor Asma Begum	Abstain
Councillor Maisha Begum	Abstain
Councillor Nathalie Bienfait	For
Councillor Rachel Blake	Abstain
Councillor Mufeedah Bustin	Abstain
Councillor Bodrul Choudhury	Against
Councillor Gulam Kibria Choudhury	Against
Councillor Jahed Choudhury	Against
Councillor Abu Chowdhury	Against
Councillor Mohammad Chowdhury	Online – Couldn’t vote
Councillor Marc Francis	Abstain
Councillor Peter Golds	For
Councillor Iqbal Hossain	Against
Councillor Kabir Hussain	Against
Councillor Kamrul Hussain	Against
Councillor Shubo Hussain	Abstain
Councillor Asma Islam	Abstain
Councillor Ahmodul Kabir	Against
Councillor Saif Uddin Khaled	Against
Councillor Ahmodur Khan	Against
Councillor Sabina Khan	Abstain
Councillor James King	Abstain
Councillor Amy Lee	Abstain
Councillor Abdul Malik	Against
Councillor Abdul Mannan	Against
Councillor Ana Miah	Against
Councillor Ayas Miah	Abstain
Councillor Harun Miah	Against
Councillor Amin Rahman	Against
Councillor Rebeka Sultana	Abstain
Councillor Maium Talukdar	Against
Councillor Bellal Uddin	Against
Councillor Abdal Ullah	Abstain
Councillor Abdul Wahid	Against
Councillor Shafi Ahmed (Speaker of the Council)	Against
RESULT	FALLS

Results of Vote on Amendment moved by Councillor Peter Golds (Conservative)
Mayor Lutfur Rahman	Against
Councillor Sirajul Islam	Abstain
Councillor Faroque Ahmed	Abstain
Councillor Kabir Ahmed	Against
Councillor Leelu Ahmed	Abstain
Councillor Musthak Ahmed	Against
Councillor Ohid Ahmed	Against
Councillor Saied Ahmed	Against
Councillor Suluk Ahmed	Against
Councillor Sabina Akhtar	Abstain
Councillor Amina Ali	Online – Couldn’t vote
Councillor Asma Begum	Abstain
Councillor Maisha Begum	Abstain
Councillor Nathalie Bienfait	For
Councillor Rachel Blake	Abstain
Councillor Mufeedah Bustin	Abstain
Councillor Bodrul Choudhury	Against
Councillor Gulam Kibria Choudhury	Against
Councillor Jahed Choudhury	Against
Councillor Abu Chowdhury	Against
Councillor Mohammad Chowdhury	Online – Couldn’t vote
Councillor Marc Francis	Abstain
Councillor Peter Golds	For
Councillor Iqbal Hossain	Against
Councillor Kabir Hussain	Against
Councillor Kamrul Hussain	Against
Councillor Shubo Hussain	Abstain
Councillor Asma Islam	Abstain
Councillor Ahmodul Kabir	Against
Councillor Saif Uddin Khaled	Against
Councillor Ahmodur Khan	Against
Councillor Sabina Khan	Abstain
Councillor James King	Abstain
Councillor Amy Lee	Abstain
Councillor Abdul Malik	Against
Councillor Abdul Mannan	Against
Councillor Ana Miah	Against
Councillor Ayas Miah	Abstain
Councillor Harun Miah	Against
Councillor Amin Rahman	Against
Councillor Rebeka Sultana	Abstain
Councillor Maium Talukdar	Against
Councillor Bellal Uddin	Against
Councillor Abdal Ullah	Abstain
Councillor Abdul Wahid	Against
Councillor Shafi Ahmed (Speaker of the Council)	Against
RESULT	FALLS

Results of Vote on main Budget Motion moved by Mayor Lutfur Rahman including the Aspire amendment.
Mayor Lutfur Rahman	For
Councillor Sirajul Islam	Abstain
Councillor Faroque Ahmed	Abstain
Councillor Kabir Ahmed	For
Councillor Leelu Ahmed	Abstain
Councillor Musthak Ahmed	For
Councillor Ohid Ahmed	For
Councillor Saied Ahmed	For
Councillor Suluk Ahmed	For
Councillor Sabina Akhtar	Abstain
Councillor Amina Ali	Online – Couldn’t vote
Councillor Asma Begum	Abstain
Councillor Maisha Begum	Abstain
Councillor Nathalie Bienfait	Abstain
Councillor Rachel Blake	Abstain
Councillor Mufeedah Bustin	Abstain
Councillor Bodrul Choudhury	For
Councillor Gulam Kibria Choudhury	For
Councillor Jahed Choudhury	For
Councillor Abu Chowdhury	For
Councillor Mohammad Chowdhury	Online – Couldn’t vote
Councillor Marc Francis	Abstain
Councillor Peter Golds	Against
Councillor Iqbal Hossain	For
Councillor Kabir Hussain	For
Councillor Kamrul Hussain	For
Councillor Shubo Hussain	Abstain
Councillor Asma Islam	Abstain
Councillor Ahmodul Kabir	For
Councillor Saif Uddin Khaled	For
Councillor Ahmodur Khan	For
Councillor Sabina Khan	Abstain
Councillor James King	Abstain
Councillor Amy Lee	Abstain
Councillor Abdul Malik	For
Councillor Abdul Mannan	For
Councillor Ana Miah	For
Councillor Ayas Miah	Abstain
Councillor Harun Miah	For
Councillor Amin Rahman	For
Councillor Rebeka Sultana	Abstain
Councillor Maium Talukdar	For
Councillor Bellal Uddin	For
Councillor Abdal Ullah	Abstain
Councillor Abdul Wahid	For
Councillor Shafi Ahmed (Speaker of the Council)	For
RESULT	CARRIES

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Supporting documents:

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Agenda item

BUDGET AND COUNCIL TAX 2023/24