• Crisis in local government funding forces Council to release money locked in non-strategic property
Newham’s Cabinet will hear that years of underfunding has meant savings and efficiencies alone are no longer enough to balance the books and protect front line services.
They will be told on May 6 that a 17 per cent reduction in funding from Central Government, about £60 million, over the past 13 years has squeezed the Council’s finances.
This comes at a time when demands on Council services have never been higher.
To off-set the costs, the council is to sell under used assets and buildings.
Councillor Zulfiqar Ali, Cabinet Member for Finance and Recourses said: “The last Conservative government failed our nation and our residents. Austerity policies since 2010, high inflation, high interest rates and the housing and cost of living crises are a reflection of that failure and incompetence.
“Our population continues to grow, adding further pressure on housing and social care and children’s budgets.
“Newham has the most severe temporary accommodation crisis in the country over 7,000 households who the Council has a legal duty to find a home. Without the cost of that alone we would have balanced our budget.
“In order to meet our legal obligations this administration has worked hard to maximise savings and efficiencies, but that can only take us so far before vital services like adult social care, housing and children’s services are impacted.
“So we have assessed our existing asset portfolio to identify those properties and pieces of land which are not bringing in sufficient income or do not add value to this Council’s strategic corporate priorities.
“We asked the new Labour government for permission to sell these under-used assets in order to protect the services our residents rely on. It’s testament to the new government that despite the economic mess they inherited, they have made it a priority to listen to us and act.”
Newham Council owns a large portfolio of land and property assets held for operational purposes or as investments, generating income which helps to fund our services. Following a review of this portfolio some assets have been identified to be sold as they are not contributing sufficient income.
In Phase 1 of the disposals programme (approved by Cabinet in February and May 2024) the Council raised £17.88 million (£1.88m more than planned) as of 1 April 2025. The target for receipts in 2025/6 is £51.2 million.
