William Eichler 11 October 2024

Council faces ‘unprecedented’ £175m budget gap

Council faces ‘unprecedented’ £175m budget gap  image
Image: Nigel J. Harris / Shutterstock.com.

Newham council has requested emergency government funding to help close an unprecedented budget gap of £175m.

The council predicts that without acting it could face a £100m financial gap in 2025/26, rising to £175m by the end of 2027/28. An estimated £100m of this is due to temporary housing costs.

It has set out a £20m package of savings, which includes a 20% increase on all fees and charges except those relating to resident parking, and income raising measures for the forthcoming financial year.

The council is also set to begin consultation on proposals for a further £70m of savings.

Cllr Zulfiqar Ali, Cabinet Member for Finance & Resources, said that past government policy and the housing market ‘has failed us.’

Mayor Rokhsana Fiaz OBE added: ‘We are a well-managed, financially responsible council but the additional costs of a 26% rise in demand for temporary housing are the difference between us being able to balance our budget both last year and this.’

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