Tower Hamlets approves 1.69 per cent tax rise

Cabinet members promised improvements in training and jobs, as well as a freeze in parking charges and additional police and CCTV. But Conservative councillors argued that the budget actually featured a 2.3 per cent increase, as London Mayor Boris Johnson had frozen his precept for the year.

Labour councillor Josh Peck, the lead member for resources, said: "We know that this year is going to be a tough one financially for our residents and we're doing everything we can to try and make things easier.

"This very small increase in council tax, which is well below inflation, is just one of the ways we're trying to support local people who are feeling the pinch."

Council tax will now be spread over 12 months instead of ten. A total of £20million will be invested in training and jobs, and 200 apprenticeships will be developed at the council and Primary Care Trust.

An extra 17 police officers will patrol the streets, while £500,000 will go towards CCTV and £200,000 to street lighting.

Cllr Peck said: "I'm really pleased that the budget proposals we outlined earlier this year have been agreed as they reflect a complete package of support for local people."

Amendments to the budget proposed by the Conservatives were rejected at last week's meeting, including plans to cut down on dog fouling and increase policing still more.

An additional £600,000 would have been spent on a 17 extra police officers over Labour's offering, while residents would have been offered half-price council tax if they signed up to become special constables.

A total of £5.5million would have been removed from council reserves to encourage landlords to move some of the 523 empty part-buy, part-rent units in the borough to the social rented sector, cutting the numbers on the housing waiting list.

An extra £500,000 would have gone to CCTV, while two extra dog wardens were to patrol the borough.

Blackwall and Cubitt Town councillor Tim Archer said: "Crime and fear of crime are the biggest issues facing residents in the borough, and we wanted to invest in more policing.

"We were also keen to make our borough cleaner by employing two additional dog wardens. A lot of residents on the island have complained to me about dog fouling, but Tower Hamlets Council actually didn't impose a single fine for fouling last year."

The Conservatives advocated a one per cent cut in councillors' allowances, as opposed to the agreed 2.5 per cent increase. They also wished to reduce the cabinet from 10 to nine, enforce a 10 per cent cut for expensive contractors and remove the food laid on at council meetings.

Cllr Archer said: "Labour has approved a 52 per cent rise in the allowance of the Deputy Mayor, backdated to last May.

"It's a real smack in the teeth.

"Our residents are facing the economic realities of the credit crunch and we think councillors need to do a bit of belt tightening and put some weight on their shoulders."