Newham Council is considering using its housing acquisition fund outside of the borough, officials revealed at a recent Overview and Scrutiny Committee meeting. The move comes as the council grapples with significant financial pressures and a non-statutory Best Value Notice from the Ministry of Housing, Communities and Local Government (MHCLG).
The Best Value Notice was issued due to concerns about governance and the medium-term financial strategy. According to Robert Whiteman, chair of the improvement board, the governance issues at Newham were not about political difference, but about behaviour.
The committee convened on Tuesday, 22 July 2025, to discuss the annual scrutiny work programme, the July finance review, and the non-statutory best value notice. The agenda frontsheet shows that Councillor Lester Hudson chaired the meeting.
Paul Kitts, corporate director for inclusive economy, housing and culture, told the committee that the council is examining the relative merits of using their allocation of acquisitions fund more outside the borough than within the borough.
This exploration comes as Newham faces a challenging financial landscape.
The potential shift in strategy highlights the increasing strain on Newham's resources, particularly in the face of rising temporary accommodation costs. Councillor Terence Paul inquired about the assumptions made regarding standards and temporary accommodation. Mr. Kitts responded that they were examining the relative merits of using their allocation of acquisitions fund more outside the borough than within the borough.
Paul Martin, Interim Chief Executive, acknowledged the gravity of the situation, stating that the Best Value Notice meant there was a fork in the road
for the council. He emphasized the importance of the council's future and its democratic control. Mr. Whiteman added that the notice reflected concerns about governance and the medium-term financial strategy.
The potential move to utilise housing funds outside the borough underscores the difficult choices Newham faces as it seeks to balance its books while meeting the needs of its residents. The coming months will be critical as the council navigates these challenges and works to regain its financial footing. The summer finance review provides more details on the financial pressures facing the council.
The Overview and Scrutiny Committee continues to play a vital role in examining these issues and ensuring transparency and accountability in the council's decision-making processes. The OSC draft work programme outlines the committee's planned activities for the coming year.
