Tower Hamlets Council is facing a projected £22.9 million deficit in its adult social care budget, a significant financial pressure highlighted in the latest Q3 budget monitoring report.
The report, presented to the Overview & Scrutiny Committee on Monday 23 March 2026, revealed substantial pressures in demand-led services, including adult social care. The primary drivers behind the increased demand are national pressures, an ageing population, and the ongoing need to ensure vulnerable people are well looked after.
Councillor Saied Ahmed, Cabinet Member for Resources and the Cost of Living, presented the budget monitoring report, noting that while the council is facing financial pressures, significant mitigation measures and transformation activities are in place to support long-term stability. These mitigation measures include the use of parking reserves, Section 106 funds, and Public Health funds. Earmarked reserves are also being utilised, and £4 million has been drawn from the Indian mitigation fund. A corporate revenue contingency of £5 million is in place.
Within the adult social care budget, the projected overspend stands at £22.9 million. Councillor Gulam Kibria Choudhury, Chair of the Health & Adults Scrutiny Sub-Committee, acknowledged the complexity and cost of adult social care, particularly given the council's statutory duties to vulnerable people.
Councillor Ahmed stated that £22.5 million has been allocated in the upcoming budget to address this deficit, and a dedicated adult social care board has been established to monitor pressures. Georgia Chimbani, Corporate Director for Health and Social Care, elaborated on the complexities, highlighting efforts to promote independence and work closely with health colleagues. She noted that while there are no easy solutions, the council is working to ensure its practice supports people to remain independent for as long as possible.
Ms Chimbani further explained that the complexities of adult social care extend beyond statutory duties and promoting independence, stating that it is 'a national problem but at the same time it is still, we have our own local issues.' She also highlighted the critical need to ensure that individuals eligible for health funding, such as Continuing Health Care or Section 117 under the Mental Health Act, receive that support. It's right that they get that funding and we should not be paying for health needs,
she emphasised.
The council is working closely with health colleagues to ensure appropriate funding is accessed, though specific outcomes of these collaborations were not detailed in the report. The Q3 budget monitoring report can be found in full here.
