• Draft 2025/26 Budget proposals to be discussed by Mayor of Newham and her Cabinet on 9 January 2025
• Report highlights projected Budget forecast gap over next three-years reduced from £175m to £157m by 2027/28, with £32m savings in the coming 2025/26 financial year
• London-wide housing crisis remains biggest driver financial pressures facing the Council
• As part of Newham’s application for Exceptional Financial Support, Council will look at increasing Council Tax by 10 percent with an assumption of 80 percent Council Tax Relief Scheme for eligible households
• Newham’s Council Tax will still remain well below the London Average
Newham Council has published a draft 2025/26 Budget plan for consideration by the Mayor and Cabinet at a meeting on 9 January 2025, with £32m in savings being proposed. The plan follows a robust budget challenge process chaired by Mayor Rokhsana Fiaz OBE, involving independent experts, Cabinet members and senior officers over the past two months, alongside engagement with local residents.
The draft Budget proposals once again put the spotlight on the London housing crisis as temporary accommodation and social services costs continue to soar, with the projected Budget forecast gap facing the Council now reduced over the next three-years from £175m to £157m by 2027/28. The report also highlights ongoing Council discussions with Central Government about its application for Exceptional Financial Support, which could allow Newham Council to use money from the sale of its assets to balance its general fund budget next year; and proposals to raise Council Tax by 10 percent if approved by the Government. Newham Council predicts it will still set the seventh lowest council tax in London if the proposed rise goes ahead. The budget papers assume an 80 percent Council Tax Relief Scheme to support lower income households in need.
The proposals highlight how savings totalling £32m for the coming financial year have been identified, and how these will ensure the administration’s commitment to ‘Building a Fairer Newham’ priorities remain intact. The Mayor and Cabinet have prioritised local investment in housing and essential services, including those that support early intervention and preventative approaches to reduce long-term costs. The savings also reflect the priorities expressed by local residents through the Council’s draft Budget engagement process underway.
Councillor Zulfiqar Ali, Cabinet Member for Finance and Resources, said: “Newham has a great record of delivering new housing and jobs, but our ability to deliver the Government’s growth agenda and our priority Building a Fairer Newham ambitions will be severely restricted if we can’t fund the very services that make our borough a great place to live.
“Nearly 70 percent of our budget, like most councils, is already spent on services for vulnerable children and adults, leaving just the remaining 30 percent for every other service we provide. That’s why we are needing to apply for Exceptional Financial Support through and selling our Council assets to fund day-to-day spending. This obviously isn’t sustainable and the whole local government sector needs multi-year fairer funding settlements based on local need.
“The proposed Council Tax rise is the amount the Government expects us to consider, and is entirely down to the growing costs to stop people being on the streets because of the housing crisis in London; and we remain committed to supporting those most in need through a proposed 80 percent Council Tax Relief Scheme.
“We have listened to residents through our consultation, who understand the escalating housing and social care pressures facing Newham Council, and we have reflected their views in our draft Budget proposals.”
