Newham Council is beginning to consult with residents on its £70 million savings proposals in an attempt to stay financially afloat as it braces for a £175 million budget black hole over the next three years.
The authority is looking at plans to stop funding Christmas and Eid lights, scrapping free tea and coffee for staff and could move employees from its main Dockside office to other parts of the borough as part of its cost-cutting measures.
Council-owned property located outside of the borough could also be sold off while the number of children’s centres operating in the borough could be reduced.
The council has said that £100m of its predicted budget gap is down to soaring temporary accommodation costs, with Newham experiencing the highest number of households in temporary accommodation out of the entire country.
For this financial year (2024/25), the council has forecast an overspend of £47m, of which £31m is due to temporary accommodation costs as more and more residents are finding themselves homeless.
As well as identifying £70m in potential savings, the Labour-run council has asked central government for Exceptional Financial Support (EFS).
The Local Democracy Reporting Service (LDRS) understands that some savings, including raising all fees and charges except for resident parking by 20 per cent, will be implemented immediately.
By increasing building and facilities hire, registration and celebration charges and raising penalty charges for littering or graffiti, the council hopes to raise up to £5m in extra cash.
The majority of the savings will need to be consulted upon with residents ahead of the draft 2025/26 budget report, which will go to cabinet by early January.
During Tuesday’s cabinet meeting (October 15), Newham mayor Rokhsana Fiaz said the council will continue its “razor-like focus” in identifying further savings and that over the next three years the council will be making “some really tough” decisions.
Ms Fiaz said: “We are working really hard through an ambitious housing delivery programme which includes building our own homes but also acquiring homes with the money that we’ve got because it is presently cheaper.
“We make no apologies for what we are doing and we will continue engaging with our residents and with councillors to explain what we are intending to do – we have been transparent and honest and open and frank about the scale of the temporary accommodation crisis that we face.”
She added: “We are going to be entering into a period that is going to be challenging – we are looking forward to the Autumn Statement and we are engaged in conversations with national government with regards to the EFS.
"We will make no apologies going to this new government to say we need help and we are not alone, many councils are doing so.”
Councillor Zulfiqar Ali, cabinet member for finance and resources, described Newham as an outer-London borough with “inner-London characteristics” and argued the funding it had received under the previous Conservative government was “completely disproportionate”.
Mr Ali said: “Had we not had the temporary accommodation crisis, we would have had no problem balancing our budget, it is the temporary accommodation which is costing us the biggest amount."
Conrad Hall, corporate director of resources, said the report made it “clear” that the council is in need of government support to deal with its “difficult” financial position, bought on by the housing crisis.
He went on to say the council couldn’t rule out the need to make further savings above its current proposals that top £70m.
Cabinet members approved the recommendations in the report and its proposed savings will be consulted upon over the next few months.
On October 23, the council will host an in-person public engagement event at Stratford Town Hall.
Some of the potential savings identified by Newham Council include:
. Selling off the Debden House conference centre in Essex: £300,000
. Scrapping free tea and coffee for council staff at Dockside offices: £20,000
. Stopping the maintenance of three bowling greens in Newham’s parks: £54,000
. Stopping funding lights and street decorations for celebrational events such as during Christmas and Eid: £200,000
. Reducing allocated for community grants programme which previously funded Warm Havens: £80,000
. Pausing production of the Newham Magazine for 2024/25: £40,000
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