This week in Tower Hamlets:

Council Faces Tough Choices on Budget and Housing Amidst Growing Pressures

Tower Hamlets Council is navigating a complex financial landscape, with significant decisions on the budget and housing services taking centre stage. The Overview & Scrutiny Committee met on Monday, 12 January 2026, to scrutinise the provisional budget for 2026-27 and the Medium-Term Financial Strategy (MTFS) for 2026-29. Meanwhile, the Housing & Regeneration Scrutiny Sub Committee met on Tuesday, 13 January 2026, to review the performance of social housing landlords and the council's preparedness for new renters' rights legislation.

Budget Battles: Balancing Act for Tower Hamlets

The provisional budget and MTFS presented to the Overview & Scrutiny Committee paint a picture of a council determined to maintain services despite unprecedented challenges. The provisional local government finance settlement for 2026-27, announced in December, represents a significant shift in funding distribution, and while the council's core spending power is projected to increase in cash terms, real-terms per-resident spending remains below historic highs.

The council is proposing a net General Fund budget requirement of £482.151 million for 2026-27. This includes a substantial £22.5 million boost for Adult Social Care, a critical service facing rising demand and inflationary pressures. Councillor Gulam Kibria Choudhury questioned how this growth would address long-term structural pressures, with officers detailing a breakdown of £10 million for structural deficit, £7.5 million for inflation, and £5 million for demographic growth.

Councillor James King raised concerns about the council's confidence in delivering £26 million in savings and efficiencies, noting that past failures have led to funds being diverted from other areas. Officers assured the committee that new savings proposals have minimal impact on frontline services and that robust governance, including a Budget and Transformation Board, is in place to monitor delivery.

A significant point of discussion was the proposed 4.8% rent increase for council tenants. Councillor Natalie Abdi questioned the justification for such an increase, particularly for working residents who may not benefit from other support schemes. Councillor Saied Ahmed, Cabinet Member for Resources and the Cost of Living, acknowledged the difficulty but stressed the need to balance the budget and reinvest in housing stock, including essential repairs and upgrades to meet decent homes standards. A £400,000 hardship fund is being established to support those facing rent increases but not eligible for other benefits.

The council is also strengthening its financial resilience by increasing its risk reserve to £54.5 million and boosting contingency provisions. This move is intended to prepare for potential economic downturns and unforeseen pressures.

• Learn more about the Budget Report 2026-27 and MTFS 2026-29.

Housing Landlords Under the Microscope

The Housing & Regeneration Scrutiny Sub Committee reviewed the performance of social housing landlords in Tower Hamlets for Q2 2025/26. The findings reveal a mixed picture, with significant concerns about the council's own housing stock.

Key findings from the Landlord Performance Report:

• Decent Homes: Tower Hamlets Council has the highest percentage of non-decent homes at 26.4%, with over 3,000 properties requiring intervention. While the council aims to reduce this figure, other providers like Poplar HARCA and Spitalfields Housing Association reported 0% non-decency.
• Repairs and Safety: While many landlords achieved high completion rates for repairs and safety checks, EastEndHomes and Clarion Housing Association showed lower performance in non-emergency repairs. Tower Hamlets Council reported lower compliance rates for asbestos safety, with a programme in place to reach 100%.
• Anti-social Behaviour (ASB): Tower Hamlets Council reported the highest percentage of stock affected by ASB cases.
• Re-let Times: Notting Hill Genesis and Sanctuary reported the longest standard re-let times.

The committee also discussed the Your Voice, Our Action programme, aimed at improving housing management services and resident engagement. While progress has been made, with 78 out of 128 deliverables completed, concerns remain about the pace of change.

Renters' Rights Act 2025: Preparing for Change

The committee received an update on the council's preparedness for the Renters' Rights Act 2025, which will introduce significant changes, including the abolition of 'no-fault' evictions and the extension of the Decent Homes Standard to the private rental sector. A cross-departmental working group is in place to ensure compliance, with communications planned for landlords and tenants.

• Explore the Housing & Regeneration Scrutiny Sub Committee meeting.

Employee Appeals Sub Committee Meets on Confidential Matters

The Employee Appeals Sub Committee convened on Wednesday, 14 January 2026, to hear appeals against employee dismissals and review HR policy documents. Due to the confidential nature of the substantive business, the press and public were excluded from most of the proceedings.

• Details of the Employee Appeals Sub Committee meeting can be found online.

Other Matters

• The King George's Field Charity Board meeting, scheduled for Wednesday, 14 January 2026, was cancelled.
• The Licensing Committee meeting, scheduled for Thursday, 15 January 2026, was also cancelled.
• The Transformation and Assurance Board met on Tuesday, 13 January 2026, to discuss the People Survey results and the Continuous Improvement Plan (CIP). The report indicated that the Culture & Workforce programme was rated Red, with the Workforce Strategy pending. A deep-dive assurance session on the One Corporate Team mobilisation plan is scheduled for February 2026.
  • Find out more about the Transformation and Assurance Board meeting.

Upcoming Meetings

Here's a list of upcoming meetings and their main topics:

• Health & Adults Scrutiny Sub-Committee - 20 January 2026 - Improving adult oral and dental health, and the proposed Health and Wellbeing Strategy 2026-2030.
• Council - 21 January 2026 - Youth Justice Strategy, amendments to the Code of Conduct, and the council's response to the Grenfell Tower tragedy recommendations.
• Licensing Sub Committee - 22 January 2026 - Applications for variation of premises licences, including extensions to operating hours and outdoor seating.
• Audit Committee - 29 January 2026 - Audit arrangements, financial performance, and governance.
• Development Committee - 29 January 2026 - Planning applications and development projects.
• Overview & Scrutiny Committee - 26 January 2026 - Amendments to the Neighbourhood Community Infrastructure Levy approach, Be Well leisure service progress, and the Communications Strategy.
• Cabinet - 28 January 2026 - Various council decisions.

This week in Tower Hamlets:

Council Moves to Secure Temporary Homes for Vulnerable Residents

Tower Hamlets Council is taking steps to provide much-needed temporary accommodation for vulnerable households facing homelessness. A proposal was considered to lease properties at 27-33 Caroline Street, London, E1 0JG for use as temporary housing. This initiative aims to bring households currently placed outside the borough back into Tower Hamlets, reducing disruption to their lives and support networks.

The move is part of a broader strategy to tackle the rising costs associated with the homelessness crisis. The council has seen a significant increase in expenditure on private rented accommodation for temporary housing, driven by the more expensive nightly paid market. By securing these 16 new homes, the council hopes to achieve better value for money and improve the quality of placements for those in need. The report noted that this aligns with the Council's strategic plan, specifically Priority 2: homes for the future.

The proposal also included delegating authority to the Director of Housing Options and Homelessness to finalise contractual details. An equalities impact screening assessment indicated a positive impact on affected households, with no negative equalities impacts identified.

The Mayor's Executive Decision Making committee was scheduled to consider this proposal on Monday, 5 January 2026. The council also considered a similar proposal to enter into a long-term lease for Luke House at 7-9 Canton Street, London, E14 6JG for hostel accommodation. This aims to maximise income from temporary accommodation by reclaiming 100% of the Local Housing Allowance (LHA) rate, reducing the council's projected £13.3 million expenditure on Housing Benefit Subsidy Loss. This accommodation currently houses approximately 50 single residents and 35 rough sleepers with complex needs.

These decisions are crucial for supporting some of the borough's most vulnerable residents, ensuring they have safe and stable housing while the council works on longer-term solutions.

• Find out more about the Caroline Street proposal.
• Find out more about the Luke House proposal.

Council Approves Ambitious Budget Amidst Financial Challenges

Tower Hamlets Council's Cabinet has approved a significant budget for 2026-27 and a Medium-Term Financial Strategy (MTFS) for 2026-29, signalling a commitment to continued investment in services despite national financial pressures. The budget, presented on Wednesday, 7 January 2026, aims to balance fiscal prudence with substantial investment in the borough's future.

The council faces a challenging financial landscape, with rising demand for services and constrained resources. However, the approved budget includes a net General Fund budget requirement of £482.151 million for 2026-27, with significant additional investment earmarked for temporary accommodation (£15 million) and Adult Social Care (£22.5 million).

Key highlights of the budget and MTFS include:

• Housing Investment: A £100 million investment over five years in existing housing stock, bringing the total planned investment to £318 million. A £400,000 hardship fund for tenants is also being introduced to help mitigate the impact of rent increases.
• Savings and Efficiencies: New savings and efficiencies totalling £6.4 million are planned for 2026-27.
• Reserves: The council is strengthening its financial resilience by increasing its risk reserve by £20 million per annum and boosting contingency provisions.
• Council Tax: A proposed 2% Adult Social Care precept and a 2.99% increase on the general Council Tax element for 2026-27 are planned. The Council Tax Reduction Scheme remains unchanged, offering up to 100% support for residents on the lowest incomes.
• Capital Programme: A substantial General Fund capital programme of £207.482 million and a Housing Revenue Account (HRA) capital programme of £996.383 million are planned for 2025-29 and beyond.

Mayor Lutfur Rahman and Councillor Saied Ahmed, Cabinet Member for Resources and the Cost of Living, both emphasised the council's commitment to protecting frontline services and investing in preventative measures. The budget aims to support vulnerable residents, invest in youth services, and continue the borough's ambitious house-building programme.

The budget was approved subject to a minor amendment and will be presented to Full Council for final adoption.

• Read the full details of the Cabinet meeting.

Licensing Committee Considers New Premises Applications Amidst Community Concerns

The Licensing Sub Committee met on Thursday, 8 January 2026, to consider several applications for new premises licences and reviews of existing ones. The discussions highlighted the ongoing challenge of balancing the needs of businesses with the concerns of local residents regarding public nuisance and crime prevention.

One significant application was for The New Blxck Ltd at Unit B, 10 Quaker Street, London, E1 6SZ. The application sought authorisation for the sale of alcohol and regulated entertainment. However, it attracted objections from the Licensing Authority, Environmental Protection, a local resident, and a resident association (SPIRE). Concerns were raised about the premises' location within the Brick Lane Cumulative Impact Zone (CIZ) and its proximity to residential properties, with specific worries about noise and public nuisance. The committee decided to adjourn the decision on this application to allow for further investigation into soundproofing and noise levels.

Another application considered was for Vittoria Wharf Studio at 10 Stour Road, London, E3 2NT, seeking extended hours for alcohol sales and recorded music. This application also received objections from Environmental Protection and several local residents, citing concerns about noise disturbance and anti-social behaviour during late hours. Conversely, there were also representations of support, highlighting the venue's positive community contribution and professional management. The committee heard extensive evidence and arguments from both sides.

The committee also scheduled a review of the premises licence for Castle and Goodman's Stile at 44 Commercial Road, London, E1 1LN.

These applications demonstrate the complex role of the Licensing Sub Committee in ensuring that new and existing licensed premises contribute positively to the borough while minimising potential negative impacts on residents.

• Find out more about the Licensing Sub Committee meeting.

King George's Field Charity Board Meeting Postponed

The King George's Field Charity Board meeting, originally scheduled for Wednesday, 7 January 2026, has been postponed. The board was set to discuss its terms of reference, financial and activity updates for the King George's Field Trust, and a review of fees and charges for 2026/27. It was also due to consider funding from Fields in Trust for park improvements. The postponement means these important discussions regarding the management of local green spaces and community facilities will be rescheduled.

• Details of the original meeting can be found here.

Upcoming Meetings

Here's a list of upcoming meetings and their main topics:

• Housing & Regeneration Scrutiny Sub Committee - 13 January 2026 - Review of social landlord performance, the Your Voice, Our Action programme, and preparedness for the Renters' Rights Act 2025.
• Transformation and Assurance Board - 13 January 2026 - Embedding People Survey results into the culture and workforce programme, and reviewing the Continuous Improvement Plan.
• Housing Management (Cabinet) Sub-Committee - 14 January 2026 - Council Housing Annual Report, Leasehold Alterations Policy, and the Your Voice, Our Action programme.
• King George's Field Charity Board - 14 January 2026 - Terms of reference, financial updates, fees and charges, and Fields in Trust funding.
• Employee Appeals Sub Committee - 14 January 2026 - Consideration of employee dismissal appeals and HR policy documents.
• Licensing Committee - 15 January 2026 - Licensing matters.
• Overview & Scrutiny Committee - 12 January 2026 - Provisional Budget Report 2026-27 and Medium-Term Financial Strategy 2026-29.
• Health & Adults Scrutiny Sub-Committee - 20 January 2026 - Health and adult social care matters.
• Council - 21 January 2026 - Full council meeting.
• Licensing Sub Committee - 22 January 2026 - Licensing applications.

This week in Tower Hamlets:

Human Resources Committee to Review Workforce Data Amidst Rising Employee Relations Cases

The Human Resources Committee met on Monday, December 22, 2025, to discuss a range of HR and personnel issues, including updates from the Communities Directorate, senior recruitment, and employee relations¹. The meeting took place, but no video was provided.

Communities Directorate Update

Simon Baxter, Corporate Director, Community Safety, provided an update on the Communities Directorate, established in 2023 with a vision for a cleaner, greener, safer, and healthier borough. The update likely covered the directorate's divisions, leadership structure, workforce insights, and ongoing service redesigns. The report pack noted that service redesigns are progressing, but some timelines have been revised or paused.

Senior Recruitment Update

The committee received an update on senior officer recruitment, including the appointment of Ellen Clark as Resources Director of HR & OD. The committee also discussed posts currently in the recruitment and selection process, including:

• Director of Young Tower Hamlets, in Children's Services
• Director of Adult Social Care, in Health and Adult Social Care
• Director of Commissioning, in Health and Adult Social Care
• Corporate Director, Resources
• Director of IT
• Director of Customer Services

The committee was also asked to approve the extension of interim arrangements for Mark Norman, Interim Director of Governance, Dal Babu, Interim Director of Community Safety, and Abdulrazak Kassim, Acting Corporate Director of Resources.

Employee Relations Casework Update

The committee received an update on employee relations casework for Quarter 2 (1 July – 30 September 2025). The report pack indicated that the total number of employee relations cases increased in Q2, with 130 cases opened and closed during this period, and 80 cases remaining open as of 30 September. Grievance cases saw a notable rise, increasing from 41 in Q1 to 62 in Q2, and disciplinary cases also grew from 26 to 33. The Communities Directorate was noted as being particularly affected by this trend. HR is actively promoting the use of the in-house mediation service to support early resolution of workplace issues.

The increase in employee relations cases could indicate underlying issues within the council's workforce, potentially impacting service delivery and employee well-being.

Work Plan

The committee reviewed its work plan for the current municipal year.

You can find the agenda and associated reports on the Human Resources Committee meeting page.

This week in Tower Hamlets:

Council to Decide on Strategic Vision Amidst Financial and Safety Concerns

Tower Hamlets Council is set to make critical decisions on its long-term strategic vision, financial stability, and community safety. The Cabinet and the Human Resources Committee are meeting to discuss plans that could significantly impact residents' lives.

Cabinet to Consider Our Tower Hamlets 2035 Strategic Vision

The Cabinet is meeting to discuss the Our Tower Hamlets 2035 strategic vision, a plan outlining the council's ambitions for the borough over the next decade. This vision, co-produced with residents and partners, aims to break the cycle of poverty and inequality, so that everyone of us can live a good life and reach our full potential.

Key Priorities and Potential Impact

The plan includes a Consultation and Engagement Summary Report and an Implementation Plan.

The Cabinet will also consider:

• Community Infrastructure Levy (CIL) Partial Review: A proposal to introduce a new rate of £117 per square metre for Research & Development (R&D) developments. This could impact the types of businesses that choose to locate in Tower Hamlets.
• Planning Obligations Supplementary Planning Document (SPD) Update: Revisions to fees and contributions from developers, potentially affecting the funding available for community projects.
• Planning for School Places 2025/26 Review: An annual review of pupil place planning, which could lead to changes in school provision and investment.
• Community Safety Partnership Plan 2025-2028: A plan outlining how the council, police, fire service, and NHS will work together to tackle crime and disorder.
• Budget Monitoring 2025/26 – Quarter 2: A review of the council's financial performance, which could lead to adjustments in services and spending.
• Youth Justice Strategic Plan 2025-2028: A plan outlining the strategic priorities and goals of the Youth Justice Executive Board.

It is not possible to determine from the agenda or reports pack whether any of these items will be discussed, or what decisions the council will make.

The Cabinet meeting is scheduled for December 17, 2025.

Human Resources Committee to Discuss Senior Recruitment and Employee Relations

The Human Resources Committee is meeting to discuss senior recruitment, employee relations, and updates from the Communities Directorate. These discussions could impact the council's ability to deliver services and support its workforce.

Senior Recruitment and Interim Arrangements

The committee will receive an update on the progress of senior officer recruitment, including permanent appointments and posts currently in the recruitment process.

The committee will also be asked to approve the extension of interim arrangements for several key positions, including:

• Mark Norman, Interim Director of Governance
• Dal Babu, Interim Director of Community Safety
• Abdulrazak Kassim, Acting Corporate Director of Resources

Employee Relations Casework Update

The committee will receive an update on employee relations casework for Quarter 2, providing an overview of formal casework, including the number of cases opened and closed, the time taken to resolve cases, and the types of cases being handled. The report pack indicates that the total number of employee relations cases increased in Q2, with 130 cases opened and closed during this period, and 80 cases remaining open as of 30 September. Grievance cases saw a notable rise, increasing from 41 in Q1 to 62 in Q2, and disciplinary cases also grew from 26 to 33.

Communities Directorate Update

Simon Baxter, Corporate Director, Community Safety, is expected to provide an update on the Communities Directorate. The directorate was established in 2023 with the vision of Working together to create a cleaner, greener, safer, healthier borough with vibrant culture and learning opportunities, focused on collaboration, innovation and reducing inequality .

The Human Resources Committee meeting is scheduled for December 22, 2025.

Licensing Sub Committee Addresses New Premises Applications

The Licensing Sub Committee met to consider applications for new premises licences, focusing on balancing business interests with community concerns. The Licensing Sub Committee meeting transcript is not available.

Strategic Development Committee Considers Planning Applications

The Strategic Development Committee met to discuss planning applications for a mixed-use development at The Royal Foundation Of St Katharine and a change of use at 1 Canada Square. The Strategic Development Committee meeting transcript is not available.

Overview & Scrutiny Committee Reviews Improvement Plans and Budget

The Overview & Scrutiny Committee met to discuss progress against the council's improvement plans, strategic performance, and budget monitoring. The Overview & Scrutiny Committee meeting transcript is not available.

Employee Appeals Sub Committee Considers Dismissal Appeal

The Employee Appeals Sub Committee convened to consider an appeal against employee dismissal. Due to the confidential nature of the business to be discussed, the public was excluded from the majority of the Employee Appeals Sub Committee meeting.

Upcoming Meetings

Here's a list of upcoming meetings and their main topics:

• Human Resources Committee - December 22, 2025 - Communities Directorate update, senior recruitment, and employee relations casework.