Decision Maker: Cabinet

Outcome: Decision approved

Is Key Decision?: Yes

Is Callable In?: Yes

Date of Decision: January 9, 2025

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

Content: 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.