Newham Council is considering the sale of Debden House, a Grade II listed building currently used as a campsite and events venue, as part of its efforts to balance the budget for 2025-26. The council faces significant financial pressures, driven by rising costs for temporary accommodation and cuts to public services.
The decision was revealed during a Cabinet meeting on Thursday, 1 January 2026, where councillors discussed draft budget proposals and an application for exceptional financial support (EFS) from central government. The council is not alone in applying for EFS, as at least four other London boroughs have made similar approaches.
Conrad Hall, Corporate Director of Resources and Section 151 Officer, identified the sale of Debden House as one of the proposed savings, which total £79.5 million across council services. Details of the proposed savings across council services are available in appendices A, B, and C of the Draft Budget Finance Review Report Cabinet 09 Jan Final. He cautioned that the current financial strategy is not sustainable in the long term
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 for all London boroughs, excluding the City of London. Newham is highlighted in red.
The proposed budget also includes an application to the Ministry of Housing, Communities and Local Government (MHCLG) for exceptional financial support (EFS) due to increasing temporary accommodation costs. The council is also considering a 9.99% council tax increase, subject to government approval, with an 80% Council Tax Reduction Relief Scheme in place to protect vulnerable households. If approved, residents in band D would pay an additional £2.41 per week, even with the Council Tax Reduction Relief Scheme in place. The Council Tax Briefing also notes that a 5% increase in band D will be £1.20 per week.
Councillor Zulfiqar Ali, Cabinet Member for Finance and Resources, attributed the financial challenges to the Conservative's mismanagement of the economy and cuts to public services from the new Labour government. He stated that the cost of temporary accommodation and other statutory services has become unmanageable for the council.
“Despite what we could do simply isn’t enough to bridge the gap as such like many other authorities we have gone to the government to seek approval for exceptional financial support.”
Councillor Sarah Ruiz, Cabinet Member for Children’s Services, highlighted that a large percentage of the council’s budget was allocated to statutory children’s services due to the high cost of placements for children in care and the lack of support from central government.
Councillor Amar Virdee, Cabinet Member for Housing, said that without the pressure of temporary accommodation costs, the council would be in surplus. The council is also transferring 15 temporary accommodation cases per month from the most expensive suppliers to lower cost suppliers, and is investing in community land trusts and building on small sites to address the housing crisis.
According to the Draft Budget Finance Review Report Cabinet 09 Jan Final, the council is cautiously optimistic that its EFS application will be approved. Conrad Hall stated that the application is well constructed
and well evidenced
, but clarified that he cannot give an assurance that it will be approved. However, Conrad Hall warned:
“For the avoidance of doubt I would highlight paragraph 15.27, I’ll read it out because it’s very short, but this is not a sustainable strategy”
The Mayor of Newham, Rokhsana Fiaz OBE, said that the council had taken hard decisions to protect residents from the impact of Conservative mismanagement and would continue to lobby the government for additional funding. She also confirmed that work would continue on developing the budget proposals, in consultation with residents, before final decisions are made by Full Council in February 2025.
The Cabinet agreed the draft budget proposals for 2025-26, which will now be subject to a consultation process before final decisions are made by Full Council in February 2025. The savings update is available on the council website. Specific services mentioned as being considered for savings, but ultimately protected, include universal environmental services, youth empowerment services, and children's centres. The report also mentions potential impacts on the Adult Social Care market sustainability and improvement fund.
