Newham residents to see low tax and new food waste collections
Newham will exit emergency government financial support ahead of schedule under a new draft budget that forecasts a multi-million pound surplus. The 2026/27 financial plan avoids the need for further Exceptional Financial Support (EFS), a measure Newham required last year alongside six other London authorities.
Economic forecasts now indicate a surplus of £13 million for the 2027/28 period, rising to £15 million the following year. This shift follows the Provisional Local Government Financial Settlement, which local leaders describe as a fairer funding deal for the borough. Newham Council announces Breakthrough Budget to deliver financial sustainability while prioritizing frontline services that residents identified as essential during recent consultations.
Council tax remains among the lowest in London
The draft budget proposes a council tax increase of 4.99%, which includes the adult social care levy. Despite the rise, the rate is expected to remain the lowest in outer London and will likely rank as the sixth lowest across all 32 London boroughs.
Financial stability has been bolstered by a significant reduction in temporary accommodation costs. The council expects to save £15 million in this area over the coming year by implementing new strategies to manage housing demand and reducing reliance on expensive short-term placements.
| Budget Detail | Projected Figure |
|---|---|
| Proposed Council Tax Increase | 4.99% |
| Food Waste Collection Investment | £2.4 million |
| Temporary Accommodation Savings | £15 million |
| 2027/28 Forecast Surplus | £13 million |
| 2028/29 Forecast Surplus | £15 million |
Investment in waste services and social care
A key feature of the 2026/27 plan is the allocation of £2.4 million over two years to roll out weekly food waste collections across the entire borough. This move follows direct feedback from residents regarding local cleanliness and environmental standards.
The budget also outlines a transformation of Adult and Children’s Services. By reducing office space and utilizing municipal buildings more efficiently, the council aims to redirect administrative savings directly into support for vulnerable residents and youth programs.
Mayor Rokhsana Fiaz OBE stated that the plan secures the borough’s financial sustainability over the medium term. She noted that the current government has responded to demands for a fairer deal, allowing the borough to move past the impact of previous austerity measures.
Councillor Zulfiqar Ali, Cabinet Member for Finance, confirmed that the budget was built on resident feedback. The council published every financial option to gauge public opinion on where spending should be focused. Residents can currently review the full draft proposals and submit their views online before the budget is finalized in February 2026.
Frequently Asked Questions
Why is Newham Council ending its emergency financial support earlier than expected?
Newham is exiting the Exceptional Financial Support (EFS) framework because of a stronger-than-predicted financial recovery. This turnaround is driven by a ‘fairer’ funding settlement from the government and a massive £15 million saving achieved by overhaulng temporary accommodation strategies. Instead of a deficit, the borough now forecasts a £13 million surplus by the 2027/28 period.
How can I start using the new weekly food waste collection service?
The rollout is funded by a £2.4 million investment over the next two years. To participate, residents should look for council-issued food waste caddies and biodegradable liners being delivered to doorsteps in phases across the borough. You won’t need to pay an additional subscription fee, as this is being integrated into the standard weekly waste collection cycle to improve local environmental standards.
How does Newham’s council tax increase compare to other parts of London?
While the budget proposes a 4.99% increase (which includes the adult social care levy), Newham remains one of the most affordable boroughs in the capital. It currently holds the title of the lowest council tax rate in outer London and is the 6th lowest out of all 32 London boroughs. This means your total bill will likely remain significantly lower than those of residents in neighboring districts.
What are the next steps for the budget and where can I see the impact on my street?
The ‘Breakthrough Budget’ is currently in its draft phase following resident consultations. The final version will be formally adopted for the April 2026 financial year. For specific details on when food waste collections begin on your street or to view the full spending breakdown, residents should visit the Newham Council website or follow local service updates on Hiyastar.
Source: Newham Council
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- 2026-05-05 03:48
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