Mayor Rokhsana Fiaz OBE statement on government announcement that Newham will be allowed to increase council tax by 8.99%

Mayor Rokhsana Fiaz OBE responded to the news that Newham Council has been granted permission to increase its council tax next year to 8.99%.

As Newham Council waits to hear about its application for Exceptional Financial Support, Mayor Rokhsana Fiaz OBE responded to the news that Newham Council has been granted permission to increase its council tax next year to 8.99%, subject to a vote by Full Council on 27 February 2025.

The decision was announced in the House of Commons today (3rd February) and recognises the exceptional challenges facing Newham, primarily caused by the costs of temporary accommodation. Newham has the highest number of residents in temporary accommodation in London, currently over 6,500 which has added a £100 million pressure to the Council’s finances over the coming three years.

Despite these challenges, the Council remains committed to supporting residents, protecting the most vulnerable, and building a fairer Newham.

Newham Mayor Rokhsana Fiaz OBE, said: “We know that this is a difficult time for many of our residents and we don’t take the decision to raise Council Tax lightly. We will continue to support those most in need through our proposed 80% Council Tax Reduction Scheme. We are also proposing to keep intact the 90% Council Tax Reduction Scheme for eligible pensioners.

“All our measures reflect our unwavering commitment to ensuring low-income households receive the vital assistance they need.

“Newham has historically set one of the lowest council tax rates in London, and with this proposed increase, we’ll have the 7th lowest council tax in London and the lowest of any outer London borough. Every penny of public money matters, and we are committed to delivering high-quality services and protecting those most vulnerable in our borough.

“I welcome the Government recognising the scale of the challenge we face in Newham as a result of 14-years of financial mismanagement by the previous conservative governments. If it wasn’t for the severe cost pressures of temporary accommodation and growing demand in social care, we would have set a balanced budget this year and next.

“Here at Newham Council, we remain committed to delivering for local residents, protecting the most vulnerable and building a fairer borough.”

Published: 03 Feb 2025