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Council - Wednesday, 22nd January, 2025 7.00 p.m.

January 29, 2025 View on council website Watch video of meeting
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Summary

The meeting began with tributes to Ray Gibson, a former Councillor for Bow West, who passed away at the end of 2024. The meeting then moved on to discuss the outstanding rating given to the council's Children's Services by Ofsted. Councillors unanimously agreed to note the briefing note on the outcome of the inspection. A motion was then passed to call for an audit of the council’s pension funds, declare the council’s intent to divest from companies that deal in arms and request a report on how to accelerate divestment. Finally, the meeting considered the report of the Chief Executive on best value improvement matters, following a best value inspection by the Department for Levelling Up, Housing and Communities1.

The Department for Levelling Up, Housing and Communities is the UK government department responsible for housing, planning and local government in England.

Outstanding Ofsted Rating for Children's Services

The council's Children's Services has received an outstanding rating from Ofsted. The Ofsted report found that children in Tower Hamlets receive timely and effective help and that staff are ambitious for children, encouraging them to reach their full potential. The inspection credits a journey of relentless drive and continuous improvement after the service was rated good five years ago. Councillor Maium Talukdar, Deputy Mayor and Cabinet Member for Education and Lifelong Learning, thanked the Mayor for his investment in the service, Steve Halsey, Chief Executive, for his leadership and Susannah Beasley-Murray, Director of Children’s Social Care, and her team for their work. A number of Councillors referred to the report's finding that the service was particularly effective at supporting children at risk from domestic abuse and disabled children. The full Ofsted report can be found in the meeting's supplement pack.

Council Divestment of Pension Funds

Councillor Saied Ahmed moved a motion calling for the complete audit of the council's pension funds and a commitment to divest from companies that deal in arms. This follows a decision made by the Pensions Committee at their meeting on 30 September 2024 to seek legal advice about divesting funds from arms dealing. The motion was seconded by Deputy Mayor Councillor Maium Talukdar.

Councillor Amy Lee of the Labour Group moved a friendly amendment to the motion that would see it broadened to cover companies that are involved in violations of human rights or international law, as well as companies involved in fossil fuel exploration. The amendment was seconded by Councillor Kabir Hussain.

Councillor Abu Talha Choudhury said that Tower Hamlets had a responsibility to ensure that its pension funds were not invested in companies that profit from suffering and that:

It does not matter how many ceasefire agreements are signed. As long as pension funds are going into the manufacturing of arms, there is every chance that our money could very well support in killing innocent men, women and children. We owe it to the staff of this council to ensure that they do not have to retire on blood money.

Councillor Peter Golds disagreed, stating that he would be voting against both the motion and the amendment. Councillor Golds made the point that defence was a necessary evil, arguing that:

If Mr Putin comes calling, I'm not sure President Trump is going to say, well, you've shut down your defence industry, but I'm going to say something to help you out.

Councillor Golds went on to claim that he had seen legal advice provided to Islington and Waltham Forest Councils stating that similar motions passed in those boroughs would not stand up in law.

Ultimately the Labour amendment failed, with a number of Labour Councillors, including Councillor Ohid Ahmed, voting in favour of the motion, despite stating that they had previously campaigned for divestment and were members of the Pension Committee.

The original motion was then passed unanimously.

Best Value

Councillor Amy Lee moved a motion to acknowledge the findings of the best value inspection report, which found a number of failings with the Council, including:

  • A ‘toxic’ political culture
  • A lack of trust between councillors, officers and partners
  • Senior appointments not being made on merit
  • A lack of engagement with key strategic partners

The motion was seconded by Councillor Mufeedah Bustin, and can be found in the meeting's supplement pack.

Councillor Syed Ahmed moved an amendment to the motion, which highlighted the recent Outstanding rating given to the council's Children's Services, and welcomed the appointment of the government envoys. The amendment also stated that the Council acknowledged the contents of the report and would work with the envoys to deliver the improvements required by the directions.

Councillor Abdal Ullah made the point that the Aspire administration had been in power for 2 years, and that the Best Value report had found a number of serious failings during this time. He also pointed out that the council was having to spend £6 million of taxpayers' money to rectify the mistakes made by the administration.

During the debate on the amendment, the Labour group argued that it contained a number of factual inaccuracies, including a claim that there had been over £60 million in overpayments to adult social care contracts.

The council's Section 151 officer confirmed that the Labour group were correct to say that the figure quoted in the amendment was inaccurate. However, the officer did point out that the amendment referred to a contract worth £60 million, which had seen overpayments of £11.9 million.

The Labour group then challenged the claim in the amendment that the toxic political culture within the council had been exacerbated over the previous 7 years, pointing out that a Local Government Association (LGA)2 Corporate Peer Challenge (CPC)3 published in 2023 did not find a toxic culture.

The Local Government Association is a membership body for local authorities in England and Wales. A Corporate Peer Challenge is a form of review of a local authority's performance, conducted by a team of peers from other local authorities.

Councillor Syed Ahmed argued that the claim in the amendment was factually correct, stating that a number of issues had been raised from 2015 to 2022 around staffing. The Labour group argued that staff turnover was a different issue to that of a toxic political culture, and asked for the amendment to be withdrawn so that it could be reviewed and resubmitted.

The Aspire group refused to withdraw their amendment, and the Speaker decided to put it to a vote, despite the acknowledgement of the inaccuracy by the Section 151 Officer. The amendment was passed, with all Aspire Councillors voting in favour. The original motion was then rejected.

The meeting concluded with a discussion of the Chief Executive's report on best value improvement matters, which outlined the steps that are being taken to address the findings of the best value inspection report (10.2 Best Value Update Report Jan 2025). This included establishing an improvement project team, reconfiguring the Transformation Advisory Board into a Transformation and Assurance Board, and appointing an officer improvement lead. The report also outlined the work that is being done to develop a programme of cultural change within the Council, and a programme of political mentoring for members.

The Chief Executive's report was noted by the Council.