PRESS RELEASE: For Immediate Release
Date: 26/2/25
Tower Hamlets Labour Proposes Budget Amendment to Freeze Council Tax and Protect Key Services
The Labour Group in Tower Hamlets has announced a bold 2025/26 Budget Amendment that delivers on its commitment to freeze Council Tax—in stark contrast to Mayor Lutfur Rahman, who is planning a 3% increase despite pledging not to raise it.
Key Highlights of the Labour Amendment
- Council Tax Freeze:
- Labour Councillors have rejected Mayor Rahman’s proposed 3% rise. Instead, they are freezing the local authority element of Council Tax to reduce the financial strain on residents already stretched by the cost-of-living crisis.
- Cancellation of Disabled Parking Fees:
- The Amendment removes planned charges for Blue Badge and Personalised Disabled Parking Bay permits, ensuring that those with disabilities are not burdened with new fees.
- Investment in Education:
- Funds for a new George Green Secondary School—which had previously been cut—are reinstated. The Labour Group believes every child in Tower Hamlets deserves modern, high-quality facilities to support their learning.
- Boost from a Labour Government:
- Under the current Labour Government, councils like Tower Hamlets have received additional funding for crucial services. This support means Tower Hamlets Labour can protect local services without raising Council Tax.
- Community-Focused Spending:
- The Labour Amendment directs resources to areas that matter most: community initiatives, front-line services, and anti-poverty measures. A key commitment is drawing down an extra £400,000 from the Anti-Poverty Reserve Fund to support local food banks, ensuring assistance for families in need.
Shadow Cabinet member for Finance and Resources, Cllr Marc Francis, said:
“Tonight, Tower Hamlets Labour Party councillors will try to stop Mayor Lutfur Rahman and his Aspire Party from imposing an unnecessary 5 per cent Council Tax increase on local residents. This increase is on top of a 5 per cent increase last year.
Labour agrees that a 2 per cent increase in the Adult Social Care precept is prudent given pressures on those services. However, we think the new Labour Government has already given Tower Hamlets Council more than enough extra funding to avoid the extra 3 per cent increase that is of the Mayor’s own choosing.
The money he is getting from that increase is being wasted on an army of advisors, pointless legal challenges, self-glorifying communications and the costs of failing the independent Best Value inspection. We hope all opposition councillors will join with us in restricting Mayor Rahman’s Council Tax hike.”
Leader of the Labour Group, Cllr Sirajul Islam, said:
“This Amendment is about putting our residents first. Freezing Council Tax is the right choice, especially when people are already struggling to make ends meet. Meanwhile, the Mayor’s 3% increase is not only a broken promise but also an unfair burden on households. Thanks to increased support from a Labour Government, we can make responsible savings, invest in our children’s education, support vulnerable residents, and still balance our budget.”
ENDS
Notes:
The Labour Group Budget Amendment can be found here: Labour Group – Budget Amendment 2025-26.pdf
The proposed 2025/26 LBTH Budget can be found here: LONDON BOROUGH OF TOWER HAMLETS
Tell Lutfur Rahman to keep his Council Tax promise – Tower Hamlets Labour
Reverse local cuts across Tower Hamlets – Tower Hamlets Labour
