Newham Council is set to scrutinise its budget performance in the coming year, following a meeting of the Overview and Scrutiny Committee on Tuesday, 22 July 2025. The move comes after the July Finance Review report indicated a substantial overspend of £41 million in the previous year and a forecast overspend of £5 million for the current year. The committee agreed to establish a working party to review the in-year performance of Newham council's budget. The meeting agenda included discussions on the annual scrutiny work programme.

Specific areas of concern that prompted the review include potential issues with the Housing Revenue Account (HRA) Capital Programme, Adults and Public Health Capital Budget, Children in Care Placement Costs, Home to School Transport Costs, and Schools in Deficit.

Councillor Lester Hudson, Chair of Overview and Scrutiny, proposed the creation of the working party, saying it would review the in-year performance of Newham council's budget. Councillor Hudson stated that the working party can lay the groundwork and dovetails for the budget scrutiny commission and will be more agile than the budget scrutiny commission. Councillor Masters seconded the proposal. The working party will consist of the four scrutiny chairs and potentially a couple of other people, with Councillor Hudson holding the delegated authority to agree on the final selections.

During the meeting, specific concerns were raised by councillors regarding several key areas:

  • Housing Revenue Account (HRA) Capital Programme: Councillor Terence Paul voiced concerns about a substantial underspend.
  • Adults and Public Health Capital Budget: Councillor Masters questioned the large reduction in capital spend.
  • Children in Care Placement Costs: Councillor Lakmini Shah raised concerns about high placement costs for children in care.
  • Home to School Transport Costs: Councillor Shah asked about rising home to school transport costs.
  • Schools in Deficit: Councillor Shah inquired about the specific support or intervention the council was offering to schools at risk of falling into deficit.

The working party aims to provide a more agile approach to budget scrutiny, complementing the work of the budget scrutiny commission.