Cllr Sirajul Islam said:
“This Spending Review delivers vital resources that could benefit our borough: an extra £3.4 billion in grant funding for local authorities by 2028-29 – boosting our core spending power by 3.1% a year- to protect services from street cleansing to youth centres. It also underpins record NHS investment (£29 billion extra a year plus £4 billion capital) for more GPs and mental-health support in our schools, a £2 billion real-terms rise in the school’s budget with expanded free school meals.
Crucially, it unleashes a £39 billion Affordable Homes Programme, complemented by £950 million for temporary accommodation reform and £100 million to prevent homelessness – yet while Labour backs families with these investments, Mayor Lutfur Rahman has no credible plan to build even a fraction of these homes here. He must now stop making excuses, stop trying to give away council land to developers and use this national funding to deliver genuinely affordable social housing in Tower Hamlets.
Labour councillors will be watching every commitment and holding this council to account to ensure every pound works for our community.”
Labour Government Delivers for Tower Hamlets through 2025 Spending Review
London, 11 June 2025 — Today’s Spending Review marks a major boost for families and communities in Tower Hamlets, with the national Labour government investing in security, health, education, housing and local services across the borough. Despite the local Aspire administration’s shortcomings, Labour in government is taking the difficult decisions needed to build a stronger, fairer future for all.
Investing in Britain’s Renewal
• Security First: A £20 billion increase in defence spending and a £2 billion uplift for security and intelligence services will keep our communities safe. Defence spending will rise to 2.6% of GDP by April 2027, the largest sustained rise since the Cold War. Funding for the new Border Security Command rises by £280 million per year by 2028-29, safeguarding our borders and cutting illicit flows.
• Record NHS Investment: The NHS budget will grow by £29 billion in real terms, plus an extra £4 billion annual capital investment. Tower Hamlets residents can expect shorter waiting times, more appointments, cutting-edge digital records and thousands more GPs and mental health teams in our schools.
• Stronger Local Services: Core spending power for local authorities grows by 3.1% per year, including an extra £3.4 billion of grant funding by 2028-29. This boost will help Tower Hamlets Council deliver improved services, from street cleaning to youth centres.
• Education and Opportunity: A £2 billion real terms rise in the school’s budget, expanding free school meals to all eligible Universal Credit families, and £2.4 billion per year to rebuild 500 schools means our children get the best start in life.
• Housing and Homelessness: A new £39 billion Affordable Homes Programme, £950 million for temporary accommodation reform and £100 million for early homelessness prevention will tackle the housing crisis facing Tower Hamlets.
• Economic Growth and Transport: £15.6 billion for city-region transport settlements and a fourfold increase in local transport grants will improve connectivity across London. Investment in research, R&D and home-grown energy technologies will create local jobs and skills opportunities.
• Cost of Living Support: Extension of free school meals to half a million more children and the Warm Homes Plan – saving families up to £600 on energy bills – will ease household budgets.
Ends
