The Mayor of Newham and cabinet colleagues met young people at Stratford Youth Zone to launch a series of resident events to discuss and share views on Council finances and proposed "Budget options".
Including both potential savings and income-raising alternatives, residents are being asked for their views across the budget options ahead of them being considered by Mayor Rokhsana Fiaz OBE and cabinet members as they prepare a draft 2026/27 Budget plan to secure Newham’s future, to be published in December.
The Council has a projected annual budget shortfall of £90 million by 2028/29 unless action is taken to reduce costs or increase income. £53 million of this shortfall is due to the predicted growing demand for Temporary Accommodation, which is expected to cost the council a total of £140 million by 2028/29. This shortfall is on top of £80 million of savings that have already been identified by the Council, including Temporary Accommodation savings.
Newham Mayor, Rokhsana Fiaz OBE, said: “Like all councils, especially in London, Newham is facing growing demand causing budget pressures, that’s why we want honest conversations with our residents about the difficult choices we’ll need to make, as well as changes about how the Council operates. Bluntly, costs for children's and adults social care are growing, like the costs of temporary accommodation, as we have legal duties to support people who are homeless. It means that our financial pressures are rising faster than the money we get.”
“Not all the options put forward by officers will necessarily go into the draft budget we’ll be publishing in December, but it’s important to me that residents understand the range of options we are having to consider under our legal obligation to set a balanced budget. That’s why I am keen for as many residents as possible to be involved in the Budget meetings we’ve planned, so we can have honest conversations about what residents can expect from their council and how much of that we can deliver with our current income. We must think about the Council’s financial stability for the years ahead because securing Newham’s future is an absolute focus.”
Councillor Zulfiqar Ali, Cabinet member for Finance and Resources, added: “Newham has a specific issue with temporary accommodation costs. We are at the sharp end of the London Housing Crisis, and if we didn’t have the £140 million predicted cost of providing temporary accommodation by 2028/29, we would be much more comfortable in setting a stable and sustainable budget. Last year, we were able to set a legally required balanced budget because we sold some Council property assets we no longer needed. While we intend to do that again this year, I know that we can only sell things once, so we need to develop a Council budget plan that is sustainable for years to come, and that means leaving no stone unturned, including how the Council operates, and what it delivers for residents.”
Options for consideration were set out in the October Finance Report presented to the Mayor and Cabinet last week and include a rise in Council Tax above 4.99% and an option of a move to fortnightly bin collections. A rise in Council Tax above the standard 4.99% would require permission from Central Government, although Newham would continue to have the lowest Council Tax in outer London. Other options include potential part outsourcing of Our Newham financial advice service and ending the School’s Enrichment Programme.
You can sign up for our online and in-person budget engagement sessions here.
