Purpose

The report sets out, for the purposes of
public engagement, the administration’s proposals for setting
the 2025/26 budget.

Decision

Decision
 
For the reasons set
out in the report and its appendices Cabinet RESOLVED to Agree:
 

i) 
For the purposes of scrutiny and engagement, the draft 2025/26
Revenue Budget proposals, as summarised in this report and detailed
in the accompanying appendices.

ii) 
To request that MHCLG agree a bespoke council tax referendum limit
of 9.99% for Newham in 2025/26.

iii) 
That subject to agreement from MHCLG to the above, and subject to
the results of the public consultation now underway, to recommend a
council tax increase of 9.99% for the Newham element of Council Tax
for 2025/26.

iv) 
To note the revised MTFS position following the latest updates to
financial forecasts, and the release of the Provisional Local
Government Finance Settlement on the 18th December 2024.

v) 
To note the intended allocation of the Dedicated Schools Grant
(DSG) in section 9, including; the Schools block transfer to the
High Needs block; planned reduction of the DSG deficit; the drop in
pupil numbers in the borough and the strategy to manage the impact
of that. 2.6. To note the approach intended for the allocation of
the Public Health Grant in section 10.

vi) 
The updated Housing Revenue Account (HRA) Business Plan as set out
in Appendix G. 2.8. To agree an average 2.7% rent increase on all
Council-owned rented accommodation (including homes managed under a
PFI contract), and service charge increases as set out in section 8
of this report.

vii) 
The increase in the HRA Capital Programme of £97.5m in line
with the HRA Business Plan as set out in section 8.

viii) 
For the purposes of the scrutiny and engagement process, the draft
Capital programme for the year 2025/26, as summarised in this
report and detailed in Appendix H.

ix) 
To receive and approve both the final 2025/26 Revenue and Capital
budget proposals informed by the results of the scrutiny and
engagement, at its meeting on the 18th February 2025 for
recommendation to full Council on 27th February 2025.

x) 
To note that MHCLG have advised that applications for EFS, by any
Council, are unlikely to be determined until late February 2025 and
that we should consider setting a “reserve” date for
Full Council early in March, the arrangements for which are in
hand.
 
Alternatives
Considered
 
a) 
Failure to face up to the budget challenge facing Newham Council in
the hope that things ‘get better’ could mean the
Council faces the prospect of very difficult decisions to be made
in a short space of time in the run up to budget setting in
February 2025.