The Cabinet of Newham Council met on Thursday 09 January 2025 to approve a ten-year Sex Work Strategy and accompanying action plan, and to discuss and approve draft budget proposals for 2025/26. The meeting also addressed the significant financial challenges facing the council, including the rising costs of temporary accommodation.

Sex Work Strategy 2025-2035

Cabinet approved the adoption of the Newham Sex Work Strategy 2025-2035 and its accompanying first-year action plan. This strategy outlines a ten-year public health approach to addressing the impact of sex work in the borough, aiming to improve safety and access to support for sex workers, while also addressing anti-social behaviour and community safety concerns for residents. The strategy was developed through extensive co-production with residents and individuals with lived experience of sex work, and it builds upon existing partnerships with organisations such as the Metropolitan Police Service.

Key priorities within the strategy include community safety and cohesion, developing community infrastructure to increase safety, fostering collaboration, breaking down barriers to support, providing specialist services for sex workers, addressing issues related to childhood and the care system, and building inclusion for all genders and those with disabilities. The strategy will be monitored through five high-level outcomes, including reductions in crime and anti-social behaviour, improved perceptions of safety, and increased engagement with support services like the Alessia Project.

December 2024 Finance Review: Draft Budget Proposals for 2025/26

The Cabinet discussed the council's challenging financial situation, largely driven by unprecedented pressures from homelessness and the rising cost of temporary accommodation, which accounts for a significant portion of the budget. Councillor Zulfiqar Ali, Cabinet Member for Finance and Resources, highlighted the impact of national economic factors and funding cuts over the past 14 years.

Despite these challenges, the council is committed to delivering quality services and has identified £79 million in savings. However, a projected budget gap of £46 million remains, even after proposed savings and a 4.99% council tax increase, which is less than the forecast increase in temporary accommodation costs.

To address this, the council is applying for Exceptional Financial Support (EFS) from the Ministry of Housing, Communities and Local Government, which would allow the use of capital receipts to bridge the revenue shortfall. This is not considered a sustainable long-term strategy but a necessary measure to navigate the immediate crisis.

A key proposal is to increase council tax by a total of 9.99% for 2025/26, subject to government approval and public consultation. This would still keep Newham's council tax amongst the lowest in London. The council tax reduction scheme for eligible households is proposed to be set at 80% rather than 90%, with a commitment to support those who may struggle with the increase.

Several directorates presented their contributions to the budget proposals:

• Children's Services: Councillor Sarah Jane Ruiz, Deputy Mayor and Cabinet Member for Children’s Services, Education & Sustainable Transport, highlighted the significant costs associated with children's social care and the need for preventative measures. The sale of Debden House campsite was discussed as a necessary measure to generate capital receipts.
• Adult Social Care: Councillor Neil Wilson, Cabinet Member for Health and Adult Social Care, detailed inflationary pressures and demographic growth impacting adult social care, noting an £11.25 million cumulative impact from the London Living Wage increase and national insurance rises.
• Housing and Homelessness: Councillor Amar Virdee, Deputy Mayor and Cabinet Member for Housing Needs, Homelessness and Private Rented Sector, and Cabinet Member for Community Safety and Crime, emphasised the significant pressure of temporary accommodation costs, particularly nightly accommodation, and the impact of rising provider costs. He also highlighted the council's efforts to keep residents in borough and secure accommodation.
• Finance and Resources: Conrad Hall, Corporate Director of Resources, and Andrew Ward, Deputy Director of Finance, provided detailed financial implications, including the projected budget gap of £157 million over three years and the reliance on EFS. They stressed that the current financial strategy is not sustainable in the long term and that issuing a Section 114 notice would not resolve the fundamental funding issues.

The Cabinet also noted the Housing Revenue Account (HRA) Business Plan, which includes a 2.7% rent increase and service charge adjustments. The draft Capital Programme for 2025/26 was also presented, with a focus on schemes that can contribute to revenue savings.

The council has undertaken extensive engagement with residents, councillors, and stakeholders regarding the budget proposals. Key findings from this engagement indicate a strong desire to protect essential services, particularly for children and vulnerable adults, and a recognition of the financial difficulties faced by the council. Residents also called for improved service delivery, financial prudence, and strengthened community partnerships.

Cabinet members agreed to the recommendations, including the draft 2025/26 Revenue Budget proposals for scrutiny and engagement, and to request a bespoke council tax referendum limit of 9.99% from MHCLG. The final budget proposals will be informed by the engagement process and presented to Cabinet in February 2025.

The meeting also noted that applications for Exceptional Financial Support (EFS) are unlikely to be determined until late February 2025, and a reserve date for Full Council in early March is being considered.