Mayor of Newham Rokhsana Fiaz OBE & Cllr Terence Paul, cabinet member for finance, set out the Council’s Budget plans for the financial year ahead, highlighting how it will continue to support Newham.
Following the formal approval of the Council’s Budget 2022-23 report at a meeting of her Cabinet, Mayor Fiaz said: ‘Peoples finances are being stretched because of the cost of living crisis caused by high levels of inflation not seen for 30-years and decisions by the government, such as the cut of the £20 universal credit uplift, which will have a devastating impact for so many of our families in Newham. That’s why this Budget will continue our agenda of supporting our people, especially our most vulnerable, during these uncertain times.’
‘For every pound we spend as a Council, 69 pence goes towards Adult Social Care and Children Services, with the remaining 31 pence for everything else. Like so many households in the borough, the Council’s budget has to stretch further because since the start of the pandemic in 2020, the government hasn’t given us the money we need to cover the £29 million costs of Covid, which has hit us hard.
‘That’s why every penny in our Budget for 2022-23 is being injected into all those vital services to support our most vulnerable during these uncertain times, and making sure the Council is able to deal with the challenges ahead. There’s an additional £3.7 million for adult services to support our elderly; and £3.8 million more for children services. Another £1 million will be going to support people who are homeless; alongside £1 million to support families with No Recourse to Public Funds.’
The additional funding detailed in the Newham Budget 2022-23 report, builds on the £9.3 million growth investment for council services already committed in the coming financial year following approval of the Medium Term Financial Strategy approved at the Full Council meeting in March 2020; as well as £26.5 million of growth investment made across frontline services over the past two-years and £2 billion already committed for housing.
All of this investment supports the Community Wealth Building, Inclusive Economy and Climate Emergency strategies being pursued by Mayor Fiaz’s administration to tackle poverty and inequality under the auspices of the Council’s Towards a Better Newham recovery plan to transform the borough through a range of services and programmes that support Newham residents, households and local businesses.
The Eat for Free programme will continue to provide a nutritious meal for every child in nursery or primary school, saving families £500 per year per child. Frontline care staff will still be paid a London Living Wage in recognition of the vital support they provide to the elderly; and low-income households will continue to benefit from the 90 percent Council Tax Relief Scheme in place. As well as supporting those who are struggling to meet their bills through the Council’s.
Our Newham service, which has delivered over 40,000 advice sessions, maximised £1.7 million in income for households by helping them access benefits, deal with debt and improve their savings. The Council will continue to fund its Employment Rights Hub and Housing Rights Unit to support those in insecure jobs or dealing with rogue landlords.
Councillor Terence Paul added: ‘We are already listening and acting on all of those issues that matter to residents, such as tackling the scourge of fly-tipping, improving our pavements and roads, and investing in our parks. That’s why this financial plan for the year ahead is so sound, as it builds on the solid foundations we laid in the three-year budget we set before the start of the pandemic. In the face of the greatest challenge of our lives, where Covid-19 has cost the Council £29 million so far, we have got our overspend down to £1.1 million now with over £11 million of savings and efficiencies made.
‘As we steer a steady ship in the face of the uncertainties ahead, and with the government failing to cover our Covid-19 costs, our need to increase Council Tax by 2.99 percent will make a difference in supporting our people through the challenges we face.’