The commitment to the ambition of Building a Fairer Newham continues and has underpinned both proposed changes to the Corporate Plan and Budget setting.
- Protecting Low-Income Families – Cabinet proposes up to 80% Council Tax discount to support the borough’s most financially vulnerable residents.
- Lowest Council Tax in Outer London – Despite the proposed increase, Newham will still have the lowest Council Tax rate of any outer London borough.
- Delivering Cleaner, Safer, Better Neighbourhoods – Advancing major regeneration projects like Carpenters Estate & Stratford Island, protecting street cleaning, and enhancing community safety.
Cabinet also approved proposals to revise the Building a Fairer Newham Corporate Delivery Plan for its final year of delivery. This follows a review taking account of delivery achieved so far, changes in the economy since the plan was agreed and the Council’s financial position. The commitment to the ambition of Building a Fairer Newham continues and has underpinned both proposed changes to the Corporate Plan and Budget setting.
Mayor of Newham, Rohksana Fiaz OBE, said:
"We recognise that any increase in Council Tax is a challenging decision, and our priority will always be to support the most vulnerable members of our community while we Build a Fairer Newham.
“Despite this rise, we remain dedicated to protecting and improving vital services, including our Council Tax Reduction Scheme, which will continue to assist those who need it most. We are committed to ensuring vulnerable residents have access to the help they need.
“At the same time, we are focused on delivering real improvements for all residents - whether that's cleaner streets, a transformed customer service experience, or advancing major projects like the Carpenters Estate and Stratford Island development.
“Our updated Building a Fairer Newham Corporate Delivery Plan also prioritises the issues that matter most, such as clean streets, safe neighbourhoods and good quality homes, as well as protecting services for our most vulnerable residents.
“In these tough financial times, our commitment to Building a Fairer Newham remains unwavering, and our proposed Budget will sustain our ability to do so.
Newham Council’s Cabinet has proposed a Budget for Full Council next week (27 February 2025) that would raise Council Tax by 8.99% as part of an application for Exceptional Financial Support from Central Government. The meeting will also consider a proposal to mitigate the pressures on the borough’s lowest income families by setting a discount of up to 80% on their Council Tax. This Budget will sustain the Council’s ambition to Builder a Fairer Newham.
If approved by Council, Newham will set at least the seventh lowest Council Tax in London and the lowest tax in outer London.
The Budget papers illustrate the challenging financial position that councils currently face, leading to difficult decisions for all councils setting their budgets this year. The Council has undertaken substantial public and stakeholder engagement since the Budget proposals were first published late last year, including eight public engagement sessions, and this has informed the further development of Newham’s Budget.
A forecasted £157 million funding gap over the next three years is being driven by rising pressures in temporary accommodation and social care demand for both children and adults. £100 million of that gap is directly attributable to the rising demand and costs of temporary accommodation, with £52 million of the £84 million projected gap in 2025/26 due to the temporary accommodation costs. 75% of the Council’s Budget is now spent on care services and housing.
As well as the proposed Council Tax rises, the Council’s response to setting a Budget has been:
A programme of transformation and redesign, already underway, to create a more efficient council with reduced running costs – delivering £23 million savings over the next three years. A series of proposals for savings worth £80 million. A request to Government for Exceptional Financial Support (EFS) permitting £51.2 million of capital receipts from the sale of underused council assets to be used to cover revenue costs. This will in deliver £51.2 million in 2025/26 and £16 million for 2024/25, allowing a balanced budget that covers the cost of temporary accommodation to be set while delivering transformation. This is while awaiting the outcome of the Government’s fair funding review and actions to address London’s housing crisis. Cabinet will be considering a proposed Asset Strategy to provide the framework for the future management of assets, including the approach to disposals needed should the EFS bid be agreed.
