Tower Hamlets (Parliament Politics Magazine) – Tower Hamlets council rises 5% tax for second consecutive year, as authority allocates funds to support low-income students and families, tackling poverty.
Free school meals, uniform grants, more assistance for students with special educational needs and disabilities (SEND), and the reinstatement of the Education Maintenance Allowance (EMA), a program that was eliminated in England in 2011, are among the main projects listed by Tower Hamlets Council in its 2025–2026 budget.
In a statement addressing the new budget, Mayor Lutfur Rahman said:
“Residents will benefit from vital support throughout their lives – from free school meals and uniforms to college and university grants and youth clubs in every ward, to comprehensive care for older residents, including free homecare, meals on wheels, and winter fuel payments for pensioners.”
With a significant commitment to the new spending plans, the 2025–2026 budget of £484.1m represents an 11.2% increase (£48.6m) over the £435.5m budget of the previous year.
The Tower Hamlets council has announced proposals to increase council tax by 5% for a second year in order to fund its ambitious financial strategy and enable these reforms.
Additional funding sources include £24.3 million in savings, of which £14 million comes from cutting back on agency staff and leaving some job openings available, and £6.5 million comes from approved budget cuts from the previous year.
Nearly half of the borough’s juvenile population lives in poverty, making it the borough with the greatest percentage of youngsters living in poverty in London, according to reports from last year.
The council has stepped up its efforts to address this problem this year.
The council was the first and only local government to offer universal free school lunches to elementary school students in 2024; this year, secondary school students will also be eligible.
This program will save an average of £550 per child annually and guarantee that every youngster receives at least one meal every day.
Families earning up to £50,350 annually will benefit from the borough’s £1 million investment in school uniform grants. Students in primary school can apply for £50 grants under the program, while those starting secondary school can apply for £150.
This program intends to assist 21,000 students throughout the course of the following three years.
Tower Hamlets has also revealed plans to invest an additional £1 million to support Special Educational Needs and Disabilities (SEND) pupils as they adjust to adulthood.
The budget’s historic decision to restore the EMA was made with the intention of providing direct financial assistance to students from low-income families in order to encourage them to continue their studies.
Since this grant was discontinued in 2011, Tower Hamlets is the first borough in England to reinstate it.
Councilor Saied Ahmed, the Cabinet Member for Resources and the Cost of Living, said in the same statement:
“This Budget reflects our commitment to ensuring that everyone has the opportunity to live a healthy, fulfilling life – from early years through to later stages of life – with the chance to thrive and reach their potential.”
What are the key aspects of the Tower Hamlets Council tax increase?
In order to shield low-income households from growing living expenses, Mayor Lutfur Rahman had previously promised in his campaign to freeze council tax for four years. This rise deviates from that promise. In the previous year, the council had also raised taxes by 4.99%.
The extra money raised by the tax hike will go toward a number of programs designed to improve community services and reduce child poverty. This covers funding for safety initiatives, social services, and education.
Around 21,000 students will benefit from the budget’s provisions for a universal school uniform subsidy, which attempts to lessen financial strain on families with household incomes up to £50,350.
Free homecare services and a Meals on Wheels program for individuals in need are among the other disbursements.