The Council meeting on Thursday 26 February 2026 focused primarily on the approval of the final budget for 2026/27 and the Medium-Term Financial Strategy (MTFS) for 2026/27 to 2030/31. Key decisions included agreeing a balanced Revenue Budget for 2026/27, setting the Council Tax with a 4.99% increase, approving the Capital Investment Programme, and noting the Treasury Management Strategy Statement.

Budget and Financial Strategy

The Council approved a balanced Revenue Budget for 2026/27, projecting a surplus for the first three years of the Medium-Term Financial Strategy (MTFS) up to 2028/29. This balanced position has been achieved through a combination of factors, including increased government funding following the Fair Funding Review 2.0, the delivery of significant savings proposals totalling £55.747 million in 2026/27, and a prudent approach to income generation. The Council also strengthened its financial resilience by rebuilding its General Fund Balance to 10% of the Net General Fund Revenue Budget and establishing new Transformation and Business Risk Reserves.

However, the MTFS highlights projected budget gaps of £15.556 million in 2029/30 and £46.077 million in 2030/31. These future pressures are primarily driven by continued high costs in Temporary Accommodation, demographic and demand-led pressures in statutory services like Adult Social Care and Children's Social Care, and ongoing inflationary pressures. To address these future challenges, the Council will focus on accelerated transformation, demand management, strengthening financial controls, and maximising income generation.

Council Tax Increase

A 4.99% increase in the Council's element of Council Tax for 2026/27 was agreed. This comprises a 2.99% general Council Tax increase and a 2.00% increase for the Adult Social Care Precept. This decision was made after considering the outcome of a statutory consultation on changes to the Council Tax Reduction (CTR) Scheme, which proposed reducing the maximum support for working-age households from 80% to 70%. While this change is projected to save £1.57 million annually, it was noted that the removal of the 'two-child benefit cap' within the CTR scheme could mitigate the impact on affected households.

Capital Investment Programme

The Council approved a Capital Investment Programme of £292.978 million for 2026/27, with a further £2.257 billion planned for future years. This programme prioritises business-critical schemes, health and safety requirements, and investments that support the delivery of revenue savings. The strategy also aims to minimise borrowing by seeking external funding and utilising capital receipts.

Treasury Management Strategy Statement (TMSS)

The Council's Treasury Management Strategy Statement and Annual Investment Strategy were noted. The strategy prioritises security, liquidity, and yield in investments, focusing on short-term holdings with highly creditworthy counterparties. The borrowing strategy aims to minimise long-term costs while managing refinancing and interest rate risks. The Council's gross external debt is projected to remain within prudential limits, although it is noted as being at the higher end compared to other London boroughs.

Fees and Charges

A review of fees and charges was conducted, with proposals to increase them where possible, not constrained by market conditions or income forecasts. This measure is budgeted to raise an additional £1 million in 2026/27 and £1.3 million in 2027/28.

Other Key Decisions and Discussions

Members' Allowances Scheme 2026-2027

The Council considered recommendations from the London Councils' Independent Remuneration Panel regarding Members' Allowances. After deliberation, the Council decided to apply a 3.2% increase to allowances, backdated to 1 April 2025. This decision aims to ensure fair remuneration that reflects the increasing demands and responsibilities of councillors, potentially aiding in the recruitment and retention of a diverse range of candidates.

Appointment of Interim S151 Officer and Corporate Director of Resources

The Council noted the appointment of Maria Christofi as the Interim Corporate Director of Resources and Section 151 Officer for a period not exceeding 12 months, effective from 5 January 2026. This appointment was made in accordance with the Council's Constitution and ensures the proper administration of its financial affairs during the secondment of the previous officer.

Political Proportionality

The Council noted a change in its political composition due to a councillor moving from the Newham Independents Group to Independent status. Consequently, seats on relevant committees, sub-committees, and joint committees were reallocated to reflect the new political balance, with the Labour Group retaining 115 seats, the Newham Independents Group allocated 9 seats, the Green Group retaining 7 seats, and 4 seats allocated to ungrouped members.

Motions

• Motion 1 - Newham: A Borough of Sanctuary – Advocating for Responsible Immigration Policies: This motion was CARRIED. The Council reaffirmed its commitment to being a Borough of Sanctuary while advocating for balanced immigration policies. It resolved to write to Newham MPs urging support for legislation facilitating safe and legal routes for asylum seekers, balancing immigration controls with community support, and ensuring access to essential services. The Council also committed to communicating with the House of Lords, neighbouring local authorities, London Councils, and the Local Government Association to foster coordinated efforts. Furthermore, the motion called for the Commission for Integration and Community Cohesion to address the impact of immigration legislation, strategies for communicating service pressures, and recommendations for enhancing partnership with community organisations. Finally, it urged the UK Government to invest adequately in local authorities, uphold human rights in immigration policy, support genuine integration, and ensure community support mechanisms are in place.
• Motion 2 - Supporting Newham's Hidden Carers: This motion was LOST. It had sought to publish an annual Carers Impact Report, review financial support for unpaid carers, appoint 'Carer Champions' in each ward, improve early identification of carers through health partnerships, explore the creation of a Carers Respite Fund, and recognise Carers Week through council-wide communications and community events.
• Motion 3 - DEFENDING OUR BOROUGH OF SANCTUARY: This motion, proposed by the Green Group, was WITHDRAWN.

Just Transition Programme Update

The Council noted a report on the progress of the Just Transition Plan, highlighting achievements in areas such as the warm homes programme, community-owned energy projects, pocket forests, healthy school streets, sustainable transport schemes, and separate food waste collection. The Council reaffirmed its strategic commitment to equity, ensuring climate action prioritises support for vulnerable groups and promotes green skills and job opportunities.

Budget Scrutiny Commission Report and Executive Response

The Council received the Budget Scrutiny Commission's report and the Executive's response. The Budget Scrutiny Commission had raised numerous recommendations across various service areas, including cross-cutting governance, financial resilience, council tax, libraries, 10 Victoria Street, youth services, temporary accommodation, environment and sustainable transport, inclusive economy, IT/digital/AI, landlord licensing, and housing revenue account. The Executive's response, detailed in Appendix 1 of the Executive Response report, indicated agreement with most recommendations, with some noted as 'partially agreed' or 'already actioned'. Key areas of agreement included strengthening corporate modelling, improving transparency in budget-related information sharing, publishing a multi-year reserves rebuilding strategy, and strengthening the corporate savings tracking system. However, the Executive did not agree to pause the Council Tax Reduction Scheme (CTRS) saving, stating it was required for a balanced budget, and proposed mitigations to address deprivation. The proposal to rescind the decision to pursue a new tower block at 10 Victoria Street was partially agreed, with further reassessment of the building's viability underway. The Executive also did not agree to require business cases for all council-owned youth venues, citing existing impact assessments and ongoing strategy development.

HRA Budget Setting Report 2026/27

The Council approved the proposed Housing Revenue Account (HRA) Revenue Budget for 2026/27 and the HRA Medium Term Financial Strategy (MTFS) for 2026/27 to 2030/31. This included agreeing to a 4.8% rent increase (CPI + 1%) for social rents, affordable homes, and PFI properties, effective from April 2026. The budget supports significant investment in the Housing Transformation Programme, aiming to enhance compliance, customer experience, and service delivery. The HRA Business Plan was updated, demonstrating financial sustainability for 2026/27, but highlighting the need for active management of reserves and borrowing headroom due to increasing regulatory standards and investment needs.

Final Budget 2026/27, Council Tax 2026/27 and MTFS 2026/27- 2030/31

The Council approved the final 2026/27 Revenue Budget, the Capital Programme to 2028/29, and set the Council Tax for 2026/27. The budget is balanced and sustainable for the first three years of the MTFS, without reliance on Exceptional Financial Support. This was achieved through a combination of increased government funding from the Fair Funding Review, significant savings proposals, and a focus on efficiency and transformation. The Council also strengthened its financial resilience by increasing General Fund Balances to 10% of the Net General Fund Revenue Budget and establishing new Transformation and Business Risk Reserves.

The Council Tax will increase by 4.99%, comprising a 2.99% general increase and a 2.00% Adult Social Care Precept. The report also detailed the Capital Investment Programme of £292.978 million for 2026/27 and £2.257 billion for future years, financed through various sources including borrowing, grants, and capital receipts. The report also included the Treasury Management Strategy Statement, Annual Investment Strategy, and Non-Treasury Investment Strategy, outlining the Council's approach to managing its financial assets and liabilities.

The Council also received updates on specific revenue grants, including the Dedicated Schools Grant (DSG) settlement for 2026/27, which totals £579.261 million. The report noted a forecast opening deficit on the DSG of £8.729 million for 2026/27, with plans for central government funding to cover the majority of these deficits.

The meeting also included a report on the political proportionality of committee seats, following a councillor's move from the Newham Independents Group to Independent status. The allocation of seats was adjusted accordingly.

Finally, the Council received a report on the Chief Officer Pay Policy Statement for 2026/27, outlining the Council's approach to remuneration for senior officers, including salary ranges and the relationship between chief officer pay and the lowest-paid employees. The report also detailed the proposed fees and charges for various council services for 2026/27, including increases in parking charges and a review of landlord licensing fees.