Aidan White and Peter Landman report on Newham’s spending for the year.

Residents in Newham face rises in council rent and council tax in the coming year.

The council will increase council tax by almost three percent and rents by just over four percent if the budget for 2022/23 agreed by the Cabinet members is endorsed by the full council which meets in March.

The council rent increase of 4.1 percent is possible under government policy that allows councils to increase rent by one percent over the rate of inflation.

People living in property Band B and D face a 2.99 percent council tax increase. Low-income households can get help from the 90 percent Council Tax Relief Scheme which remains in place.

Around a third of the money raised from this will top up the money set aside for adult social care. According to the Mayor Rokhsana Fiaz more than two-thirds of council spending goes towards Adult Social Care and Children Services. She says an additional £3.7 million for adult services will support the elderly and there is £3.8 million more for children services.

The Mayor and councillor Terry Paul, the cabinet lead on finance, said that tax and rent rises are necessary to balance the budget which has been hit by a £9m Covid-19 funding shortfall.

The council also plans £7m in pre-planned savings and £3.7m more cuts in the next financial year.

Capital investment plans for the coming year include using funds already set aside for homes and development and will see:

£5.5m spent on a new Shipman Youth Zone building and £3.3m for relocating Plaistow Library to Valletta Grove.
A further £1.8m set aside towards the purchase of Lady Helen Seymour House, which the council will use as an assessment centre for rough sleepers.
£3.8m investment in children’s social care and £1m for supporting families with no recourse to public funds.

Councillor Paul said: “I’d say to residents out there, look at the budget in the context of how we’re focused on the priorities of people who need our services the most.

“Look at the money we’ve given for temporary accommodation, the money for children’s services and the money for no recourse to public funds. I think we can all agree those are key priority areas for residents.”

He added that the council debt was down and savings had improved the financial position. “In the face of the greatest challenge of our lives, where Covid-19 has cost the Council £29 million so far, we have got our overspend down to £1.1 million now with over £11 million of savings and efficiencies made.

“I’m very proud of the budget and that in these challenging times we are able to say, across the footprint of our council services, there is some really good work to do.”

The plans were recommended for approval and they will now go to full council for debate later this month.

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