Council passes Mayor Lutfur Rahman’s “people’s budget”

A “PEOPLE’S BUDGET” has been passed by Tower Hamlets Council on Wednesday, 26th February, after nearly three hours of debate.

This was the third budget proposed by Mayor Lutfur Rahman since he was elected Mayor of Tower Hamlets, for the third time, in May 2022. The Mayor spoke first, and the papers were then introduced by Cllr Saied Ahmed, Cabinet Member for Resources and the Cost of Living. Between them, they reminded the meeting of all the successes of the Mayor’s Administration so far.

Spending had concentrated on supporting the residents of Tower Hamlets through the cost of living crisis. There had been spending on education (free school meals for all, the Education Maintenance Allowance, the University Bursaries and a new youth service). There had been support for older residents, such as older residents whose Winter Fuel Allowance had been cut by the Labour Government.

There had been spending on health and leisure (a revamped service offered free swimming for women and girls) and on the environment (particularly on street cleansing and waste collection).

And Mayor Rahman and Cllr Ahmed promised more of the same. There was more help for the elderly, with Mayor Rahman scrapping the charges for older residents who need home care – charges brought in by Labour Mayor John Biggs. Mayor Rahman was also reinstating the Meals on Wheels service scrapped by John Biggs too.

There was more help for younger peope too, with a new school uniform grant to children starting primary or secondary school and more help for young people with Special Educational Needs as they become adults. All this was to be achieved while balancing the books – and even adding to reserves. Tower Hamlets is, it was said, the envy of many other Councils.

Aspire councillors rose to their feet, one after one, to pick out some part of the Mayor’s budget for special praise. They also had to deal with Labour’s niggly little amendments.

Faced with a barrage of positive frontline spending targetted at those most in need – a transformative and progressive budget – Labour forgot to praise its positive measures or the Mayor whose vision they were. Instead, they tried to claim credit for Mayor Rahman’s spending – which is apparently only possible thanks to the generosity of Keir Starmer’s Labour Government.

It was Cllr Peter Golds who pointed out that the Government had given us extra money to pay the increase in employers’ national insurance contributions which the same government had introduced. And the extra government money will not cover the whole increase. Someone else pointed out that the Government had not given the Council the money to pay pensioners the Winter Fuel Allowance that the Government had taken away.

The Government had also given the Council more money to invest in housing – such as some funds to buy up some homes in the borough and take a bit of the pressure off the housing waiting list. This was a good thing said one Labour Councillor. And then another Labour Councillor told the Administration off for spending this money for the purpose it was given – on the basis that homes in Tower Hamlets cost so much, the Government’s generous cash allocation won’t go very far.

The debate was very detailed and most councillors seemed well briefed and well behaved. But that was the essence of the discussion: Aspire looking for clear spending on services which do people good; and Labour having a right old sulk. There was copious applause from the public gallery for every Aspire speaker, but none for any Labour speaker.

Labour’s budget amendment attracted 18 vote, but 23 councillors voted against it and one abstained, so that was that. Labour then voted against Mayor Rahman’s budget, presumably just to show that they could. The Mayor’s budget was passed, with 22 votes in favour, 17 against and 3 abstentions.

So now it’s eyes down for another year of delivery. Watch this space.

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