Newham Council is facing a significant financial challenge, with a potential £53 million budget shortfall projected for 2026/27. This has prompted the launch of a public engagement campaign to gather resident input on how to address the situation. The council must consider all options, with a focus on delivering statutory services. Areas where savings options will be developed include refuse collection, recycling, parking services and highways, education services, children's centres, youth empowerment services, adult social care, economic regeneration and planning.
The Newham Council cabinet, at a meeting on Thursday 23 October 2025, reviewed the council's financial position and agreed to consult with residents on difficult choices ahead. These difficult choices include:
- Increasing council tax by more than the referendum limit.
- Further increases to fees and charges.
- Reducing the maximum level of financial support under the Council Tax Reduction Scheme.
- Cutting costs of adult social care by reducing the number of small packages of care.
- Increasing the caseloads of social workers in children's social care.
- Significantly reducing the level of universal youth services provided.
- Substantially reducing or ceasing investment in cultural services and events and further reviewing the extent of library provision.
- Changing staff pay terms and conditions, including potentially exiting national pay terms and conditions.
The cabinet also endorsed the Delivering Best Value for Our Residents Plan, developed after receiving a non-statutory Best Value Notice in May 2025. A 'non-statutory Best Value Notice' is a formal notification that national government has concerns about the Council's capacity to comply with its Best Value Duty under the Local Government Act 1999. Newham Council received one on 8 May 2025. The notice was prompted by concerns about value for money, culture and governance, and significant delivery concerns. The implications include the need for the council to improve its financial stability, work with the independent Improvement and Transformation Board, review roles and responsibilities, implement cultural change, ensure effective leadership, and deliver against action plans.
As part of the budget strategy, the council will also consult on changes to the Council Tax Reduction Scheme to reduce support offered to residents. The council is also exploring alternative revenue streams or cost-saving measures, including:
- Increasing Council Tax.
- Increasing fees and charges across the council.
- Reducing costs in Adult Social Care.
- Increasing social worker caseloads in Children's Social Care.
- Reducing universal youth services.
- Reducing investment in cultural services and events and reviewing library provision.
- Changing staff pay terms and conditions.
- Implementing a corporate efficiency drive.
- Reviewing and amending the Borough's Statement of Licensing Policy - Gambling Act 2005
The cabinet agreed to launch a public engagement campaign on the difficult choices facing the council so that residents and other stakeholders can have effective input and inform the ultimate political decision making on the 2026/27 budget.
The Public reports pack 23rd-Oct-2025 10.30 Cabinet.pdf provides further details on all agenda items.
Newham Council encourages residents to participate in the upcoming public engagement campaign to help shape the borough's financial future.
