The Cabinet of Newham Council met on Thursday 8 January 2026 to discuss the 2026-27 draft budget proposals and received an update on the CQC assessment of the council's adult social care services. The Cabinet approved the draft budget proposals, which aim to create a pathway to financial sustainability and deliver a fairer Newham, and noted the CQC report, with a fuller report to follow.

CQC Local Authority Assessment

Cabinet noted the findings of the Care Quality Commission (CQC) assessment of Newham Council's adult social care services, which resulted in a rating of requires improvement. Councillor Rita Chadha, Cabinet Member for Health & Adult Social Care and Transforming Newham for the Future, reported that the council scored 62%, narrowly missing the good rating of 63%. She acknowledged that work needed to be done but stated that nothing in the report was a surprise. Councillor Chadha thanked colleagues in adult social care and the corporate leadership team for their work in reaching this stage. A fuller report and response will be presented to Cabinet in the coming months.

2026/27 Draft Budget Proposals: Creating the pathway to financial sustainability and delivering a Fairer Newham

The Cabinet approved the draft 2026/27 Revenue and Capital budget proposals, which aim to create a pathway to financial sustainability and deliver a fairer Newham. This decision was made following extensive work by officers and Cabinet colleagues, and in light of the Provisional Local Government Finance Settlement announced on 17 December 2025, which materially improves the Council's financial position.

Councillor Zulfiqar Ali, Statutory Deputy Mayor and Cabinet Member for Finance and Resources, presented the draft budget, highlighting that Newham would be moving from austerity to stability. He noted that for over a decade, councils had faced increasing demands with decreasing funding, and that the new Labour government's Fair Funding review had recognised Newham's arguments for fairer distribution of funds, taking into account population growth, housing pressures, and the depth of deprivation.

The provisional local government financial settlement represents a 13% increase on the previous year's base funding. This uplift, coupled with the Council's own efforts in identifying savings and strategic interventions, means that Newham is no longer forecasting a significant budget gap. The Council is not applying for Exceptional Financial Support (EFS) this year, a testament to the responsible leadership locally and nationally.

The draft budget proposes a 4.99% council tax increase, inclusive of the 2% adult social care levy. Despite this increase, Newham will remain the lowest council tax authority in outer London and is expected to be the sixth lowest across the whole of London.

Key proposals within the budget include:

• Adults and Health: An additional £15 million investment in adult social care, focusing on supporting people in their own homes and communities, with an emphasis on early identification and intervention.
• Children and Young People Services: Continued support for schools, with all rated Good or Outstanding, and investment in the Youth Empowerment Service. Plans include expanding the offer for children at risk of entering care and transforming Children's Social Care in response to government reforms.
• Environment and Sustainable Transport: Protection of resources for public realm services, including street cleansing and waste collection, with additional funding for neighbourhood improvements. This includes the rollout of phase 2 of separate food waste collections and increased activity to tackle litter and fly-tipping.
• Inclusive Economy and Housing: Continued investment in the Housing Services Improvement Programme, with a £325 million investment programme in the Council's housing stock over the next five years. Plans also include the completion of 318 new council homes and progress on estate regeneration programmes.
• Savings Proposals: £23.5 million of new savings proposals over three years, building on £51 million already agreed. These include savings in Adults & Health, Children and Young People, Environment and Sustainable Transport, Inclusive Economy & Housing, Resources, and Corporate Budgets. A significant saving of £15 million is also proposed for Temporary Accommodation costs.

The Cabinet RESOLVED to agree, for the purposes of scrutiny and engagement, the draft 2026/27 Revenue Budget proposals. They also noted the revised Medium Term Financial Strategy (MTFS) position, the intended allocation of the Dedicated Schools Grant (DSG), the approach for the Public Health Grant, an average 4.8% rent increase on Council-owned rented accommodation, and the draft Capital Strategy. The Cabinet also agreed to receive and approve the final 2026/27 Revenue and Capital budget proposals at a future meeting for recommendation to full Council.

The Cabinet also noted the reduction in the budget for the People Powered Places programme, with £800,000 to be used for environmental public realm improvements.

The meeting also included discussions on the Housing Revenue Account (HRA) Business Plan update, Populo Living 2026/27 Business Plan, Hamara Ghar Refurbishment Modernisation and Retrofit Project, and the exclusion of the press and public for exempt appendices related to the budget proposals.