Newham Council’s 2026/27 draft Budget ends emergency support, keeps council tax among London’s lowest, and invests in services residents value most.
-
Borough exits emergency financial support ahead of schedule while maintaining amongst lowest council tax rates in London.
-
2026/27 Draft Budget highlights no need for Exceptional Financial Support and forecasts a surplus of £13m and £15m respectively for the 2027/28 and 2028/29 years based on Provisional Local Government Financial Settlement published by government last week.
Newham Council has published its draft Budget plan for 2026/27, marking a turning point in delivering financial stability, investing in frontline services and keeping Council Tax among the lowest in the capital.
The draft 2026/27 Budget plan will be the basis of the Council’s engagement with residents, ahead of being finalised for approval by councillors in February 2026. Budget highlights government’s fairer funding settlement for Newham.
Significantly, the Council will no longer require Exceptional Financial Support (EFS) from central government, having been one of just seven London authorities that needed this emergency measure last year. The rapid and early exit from EFS demonstrates sound financial decisions made by Mayor Rokhsana Fiaz OBE and her Cabinet to protect frontline services and drive transformation at the Council.
The draft 2026/27 Budget plan responds directly to what residents said matters most: a clean and safe borough, support for the elderly and vulnerable, and investment in young people. Key commitments include:
-
Council Tax kept low with proposals to set Council Tax at 4.99%, inclusive of the social care levy, representing the lowest in outer London and at least the 6th lowest of the 32 boroughs in the capital.
-
Weekly food waste collection: £2.4 million invested over two years to roll out the service borough-wide.
-
Transformed Adults and Children's Services: investment and efficiency improvements to support for residents who need it most.
-
Smarter use of buildings: savings from reduced office space, reinvested into frontline services.
The 2026/27 Draft Budget plan also highlights the impact of the Council plans to tackle the high costs of temporary accommodation, with a reduction in the predicted costs of temporary accommodation of £15 million in the coming year.
Mayor Rokhsana Fiaz OBE said: “Our draft Budget plan for next year is game-changing and sets out how we are securing the Council’s financial sustainability over the medium term. We won’t need further Exceptional Financial Support from the government, showing how we continue delivering our best value promise to the people of Newham as we invest for fairness and what residents value most.
“At last, we have a Labour government that has responded to our demand for a fairer deal for Newham residents. After fourteen years of Tory austerity cuts that’s had a devastating impact for our communities, we are back on track with a government giving us the money we need to support our building a fairer Newham plans.”
“Cabinet Member for Finance, Councillor Zulfikar Ali, said: "This is a breakthrough budget for Newham. We took the unusual step of publishing every option and asking residents what they thought. They told us clearly: keep the borough safe and clean, support young people, invest in better services rather than cutting them, and keep council tax affordable. This budget delivers on all of that."
Residents can have their say on the draft 2026/27 Budget proposals and share their views online here, ahead of engagement in the New Year.
