Council Agrees Budget Amidst Unprecedented Financial Challenges

Newham Council has published its balanced budget for the 2024/25 financial year following decision at Full Council (29 February); investing, protecting and improving services during a time of unprecedented financial challenges facing local government.

The Budget outlines the complexities faced by the Council, addressing increased costs, demands on services and a shortfall in funding from the Government. Applying robust financial measures, the Council will offset the rising cost of delivering services for residents by making £22 million of savings and efficiencies, and from generating £16 million from the sale of unused council land and properties; funding temporary accommodation for households in need during the housing crisis.

The Council is also protecting Children’s Centres, youth services and the child enrichment programme from any reductions in the next financial year.

Mayor of Newham, Rokhsana Fiaz OBE, said: “Our top priority has always been to place residents at the core of our vision for a fairer Newham. Our budget underscores our enduring commitment to safeguarding frontline services, balancing the budget while investing in Newham's long-term future; ensuring that we spend every pound wisely and boosting spend for those families facing homelessness. 

“Across the country, local councils grapple with financial pressures stemming from economic uncertainty, inflation, increased service demand and population growth. Government funding addresses only a fraction of the estimated £4 billion in additional costs and demand pressures anticipated over the next two years. We’ve had to make some incredibly difficult decisions, and look at new ways to ensure residents continue to receive much needed services and support.

“We remain steadfast in our efforts to build a fairer Newham, and our budget is testament to our continued commitment to local investment for fairness in these tough times.”

Councillor Zulfiqar Ali, Cabinet Member for Finance and Resource, said: “Despite the challenges imposed on Newham and other local authorities across the UK by continued austerity, lack of funding from the Government, and the highest inflation rates in four decades, we take pride in our ongoing efforts to build a fairer Newham, improve our services, and exploring innovative approaches to meet the diverse needs of our community. 

“With our robust approach to long term policy and financial planning, in our final 2024/25 Budget for these toughest of times, we are continuing to put substantial investment in housing and other areas while managing our plans, projects, investments and our finances better as part of our Medium Term Financial Strategy. However, the challenges over the next two years remain stark; we need government to recognise the needs and pressures faced by local authorities and to put the necessary funding in place to avoid any substantial changes to the services that residents rightly expect and deserve.”

Newham has one of the largest numbers of households in temporary accommodation in the UK, with some of the highest costs in the country due to the growing number of people seeking help. The Council has put in place substantial measures, investing £10 million in the current year and planning an additional £17.5 million in 2024/25.

The Council will also continue to deliver a £460m capital programme in 2024/25, which focusses on building much-needed housing across the borough with plans to build over a 1,000 affordable homes over the next few years.

There will also be modest increases in Council Tax and social rent, however Newham remains one of the lowest charging authorities in the capital for Band D properties, the most used in the borough.

Since the publication of draft budget report, the Scrutiny committee’s Budget Working Commission has worked with council officers and members on the detailed savings and growth proposals. 

For more information, refer to the detailed report and appendices available on the Newham Council website: www.newham.gov.uk/council/engagement-newham-council-budget-2021