A tongue-in-cheek unravelling of the riddles around the Tower Hamlets Council Budget and the competing narratives. Introducing the Council Tax Wars in Tower Hamlets.
A long time ago in a galaxy far, far away…: In the Town Hall at Planet Tower Hamlets
In the frenzied whirlwind of Tower Hamlets’ Budget Meeting on the fateful Wednesday of February 28th, 2024, two seismic occurrences rippled through the chambers, setting the scene for a cacophony of chaos, and controversy.
First, picture this: a room teeming with fervour, a microcosm of political theatre where reality often morphs into surrealistic absurdity. As the clock ticked, tensions escalated, and wires metaphorically, and perhaps literally, got tangled in a web of confusion. Eyewitness accounts painted a vivid tableau of miscommunication, the kind that could spark a conflagration in the blink of an eye. What started as a mere glitch of bad acoustics was swiftly inflated into a grandiose narrative, by Tower Hamlets Labour and the right-wing press, a modern-day retelling of the Second Siege of Khartoum. In this dramatization, Labour Councillors cast themselves in the role of Charles Gordon, “Gordon Pasha”, valiantly struggling against a civilisational onslaught, while the public gallery became a fervent congregation, rallying behind their metaphorical Mahdi.
On Friday 1st of March 2024, that evening, Rishi Sunak the Prime Minister played a mini-me Gladstone promising to relieve the siege of the Town Hall by dispatching a relief column led by Micheal Gove, and his merry band of Kitchneresque inspectors.
But what was the second event?
A New Hope: A Progressive Council Tax?
But amidst the uproar and the fevered frenzy of sensationalist headlines, it appears a quieter revolution was underway, one that slipped through the cracks of media scrutiny like a stealthy thief in the night. Buried beneath the rubble of sensationalism lay the passing of a budget, a seemingly mundane event that harboured within it the seeds of social change. Here, in the shadows of the spectacle, it appears the groundwork was laid for a progressive shift in council tax policy. A policy that dares to challenge the status quo, where the wealthy were no longer coddled by a system that perpetuated inequality. Perhaps in Tower Hamlets, a beacon of hope emerged. Wealthier residents faced the prospect of shouldering a heavier burden, while their less fortunate neighbours were granted a respite, however fleeting, from the relentless squeeze of economic disparity and a cost of living crisis. A progressive Council Tax?
But the more important element is the progressive nature of the increase. Council Tax due to its nature is a regressive tax. A regressive tax is a tax imposed in such a manner that the tax rate decreases as the amount subject to taxation increases. This means the poorer you are, the more you pay as a proportion of your income on Council Tax.
In the chaotic realm of municipal finance, where the whims of bureaucrats collide with the harsh realities of the streets, Tower Hamlets emerges as both battleground and bastion in the war against fiscal oppression. The Council Tax increase will be capped at above the median household income in Tower Hamlets. This means, most people will not see the increase in their bills.
Tower Hamlets Council research, commissioned by the previous Labour administration shows, that In 2019, the median household income in Tower Hamlets is £30,760. This was slightly more than London (£30,700) but greater than England (£28,211). The mean household income was £37,780, over £1000 more than London (£36,501) and greater than England (£32,833).
It’s truly refreshing to see the Aspire administration taking steps to address this issue, whether intentionally or coincidentally. This aligns with my advocacy as a Labour Councillor and my role as Secretary of the Tower Hamlets Labour Party BAME Forum, to introduce elements of fairness in an unfair Council Tax Regime.
Motion passed by the Tower Hamlets Labour Party BAME Forum in 2018, asking for changes in the regressive Council Tax regime in Tower Hamlets.
Are such feelings welcomed by my former colleagues in the Tower Hamlets Labour Party?
The Empire Strikes Back: From Culture Wars to the Council Tax War in Tower Hamlets
In my stint as a Labour Councillor, the top dogs saw the Aspire party as straight-up rebels. The funny thing is, loads of the current big shots of Aspire were once Labour. So they are, in a way, a rebel alliance of ex-Labour politicians and others, who somehow have grievances against the current setup of Tower Hamlets Labour. Now, as the budget buzzes and the dust settles post-budget, Tower Hamlets Labour Party is throwing down the gauntlet, striking back against Lutfur Rahman and his Aspire posse. Forget Culture Wars, it’s all about Council Tax Wars now. From campaigning against Palestinian flags to now campaigning against Council Tax.
They’ve been putting on a show, hitting the press circuit, flinging leaflets left and right. But is it hitting home? The best bet is a solid no, and here’s why.
First off, the Council Tax crusade is getting drowned out by the noise over Palestine. And to make matters worse, Tower Hamlets Labour Party isn’t saying squat about it. So, folks are seeing the Council Tax hustle as a cover-up for their silence on Palestine.
Second, the party’s tearing itself apart from the inside out. There’s more drama here than a daytime soap opera. They just ain’t got the organization to pull off a borough-wide campaign. I’ve had insiders spill the tea on the epic levels of infighting. Labour councillors are ghosting campaign gigs, leaving the troops feeling low. It’s got so wild that some Labour members are openly backing an independent challenger against their own MP. And Joe Public ain’t buying it. They see Tower Hamlets Labour Party and their spiel as a joke. Goes to show, that in politics, a house divided doesn’t stand a chance.
Return of Aspire? Premiering in 2026
In the wild, wild world of Tower Hamlets politics, Lady Luck seems to have taken quite the shine to Mayor Lutfur Rahman and his Aspire crew. It’s like Napoleon once drawled: “Forget those textbook generals, give me the lucky ones!” And by the stars aligning just right, Rahman scored big with a hefty financial settlement from Whitehall in ’23, beefing up public services like the ever-popular free school meals for all.
Fast-forward to ’24, and Rahman’s pulling off some fiscal wizardry, juicing up revenues while barely ruffling the feathers of Tower Hamlets locals. He’s tossing in the early ingredients for a spicy new Council Tax Regime, one that dances to the beat of household income.
Meanwhile, his main rival’s, Tower Hamlets Labour, going up in flames, courtesy of some good old-fashioned infighting. Their attempts at stirring the pot with old-school wedge politics, like taking down the Palestinian Flag, are blowing up in their faces. The signs are as clear as spray-painted graffiti on the Tower Hamlets walls: the Labour Party’s on a one-way ticket to Defeatville come 2026.
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