Newham residents secure low council tax and new waste services
Newham is set to exit emergency financial support ahead of schedule as the local authority unveils its draft 2026/27 budget. The plan outlines a return to financial stability, forecasting significant surpluses in the coming years while maintaining council tax rates among the lowest in London.
Financial stability and surplus forecasts
As Newham Council announces Breakthrough Budget to deliver financial sustainability, the local authority is moving away from emergency measures. Last year, Newham was one of just seven London authorities utilizing Exceptional Financial Support (EFS) from the central government. Current projections now indicate a surplus of £13 million for the 2027/28 financial year, rising to £15 million in 2028/29.
| Financial Metric | Detail |
|---|---|
| Proposed Council Tax Increase | 4.99% (including social care levy) |
| Food Waste Investment | £2.4 million over two years |
| Temporary Accommodation Savings | £15 million reduction in predicted costs |
| 2027/28 Forecast Surplus | £13 million |
| 2028/29 Forecast Surplus | £15 million |
Weekly food waste and social care investment
The administration is prioritizing frontline services based on direct resident feedback. A key feature of the proposal is the rollout of weekly food waste collections across the entire borough. This service expansion is supported by a specific £2.4 million investment over the next two years.
Despite the proposed increase, the borough expects to maintain low council tax rates in Newham. The rate is projected to remain the lowest in outer London and at least the sixth lowest across all 32 London boroughs.
Reduced spending on temporary accommodation
A major driver of the improved financial outlook is the reduction in temporary accommodation costs. The council expects to save £15 million in this area over the coming year through smarter building use and reduced office space requirements. These savings are being redirected into Adults and Children’s Services to support vulnerable residents.
Mayor Rokhsana Fiaz OBE stated that the plan is game-changing for the borough’s medium-term sustainability. “We won’t need further Exceptional Financial Support from the government, showing how we continue delivering our best value promise as we invest for fairness,” Fiaz said.
Councillor Zulfiqar Ali, Cabinet Member for Finance, noted that the budget follows a period of public engagement. “Residents told us clearly: keep the borough safe and clean, support young people, and keep council tax affordable. This budget delivers on all of that,” Ali said. Residents can provide further feedback on the proposals online before the final vote in February 2026.
Frequently Asked Questions
Why is Newham Council ending its emergency financial support and what does the ‘Breakthrough Budget’ mean for me?
Newham is exiting the central government’s Exceptional Financial Support (EFS) framework ahead of schedule due to a successful shift toward financial sustainability. The ‘Breakthrough Budget’ signifies a move from crisis management to growth, with the council forecasting a £13 million surplus by 2027/28. For residents, this means the local authority is no longer just ‘staying afloat’ but is now in a position to reinvest in frontline services and long-term infrastructure.
How will the new weekly food waste collection service work and how do I prepare?
The council is investing £2.4 million over two years to roll out weekly food waste collections across the entire borough. To prepare, residents should:
- Monitor Rollout Dates: Check the Newham Council waste portal for specific start dates for your street.
- Secure Your Caddy: Use only council-provided bins to ensure compatibility with collection vehicles.
- Reduce Landfill: Use the service for all cooked and raw food scraps, which helps the borough reduce carbon emissions and avoid expensive landfill levies.
Will Newham still have the cheapest council tax in London after the 4.99% increase?
Yes, Newham remains one of the most affordable boroughs in the capital. While the 4.99% increase (which includes the social care levy) is standard across most UK councils, Newham’s rates are projected to remain the lowest in Outer London and at least the sixth lowest across all 32 London boroughs. This is made possible by the council’s ability to slash £15 million from temporary accommodation costs through more efficient housing management.
When do these budget changes start and where can I see the full draft proposal?
The changes are part of the 2026/27 draft budget, with the new financial cycle and service updates typically taking effect in April 2026. Residents can view the full financial breakdown and provide feedback through the Newham Council official website during the public consultation phase. Stay updated on hiyastar.co.uk for localized news on how these surpluses will be allocated to your specific neighborhood.
Source: Newham Council
