The Cabinet of Newham Council met on Tuesday 27 February 2024 to discuss minor amendments to the final budget proposals for 2024/25. The meeting resulted in the approval of additional savings which will increase the council's contingency budget.

Budget Amendments and Contingency Increase

The Cabinet agreed to incorporate an additional £293,000 in efficiency savings into the final budget proposals for 2024/25. These savings have been identified through a review of the Mayor's Office and the Communications team, with £167,000 coming from the Mayor's Office and £126,000 from the Communications team. This amendment will also lead to an equivalent increase in the council's contingency budget, providing an additional buffer against financial uncertainties.

The report detailing these amendments, Local Investment for Fairness in Tough Times - Final Budget Proposals for 2024/25: Minor Amendments, was presented by Councillor Zulfiqar Ali, Cabinet Member for Finance and Resources. He explained that these further efficiencies were identified by the Administration and that the council's priority of sound financial management would be supported by the increased contingency. The Cabinet resolved to recommend these changes to the Full Council for consideration on 29 February 2024, as part of the other recommendations previously agreed on 20 February 2024.

The identified savings are part of a broader review of the Communications, Marketing, Policy, Public Affairs, Research, and Mayor's Office functions. This review aims to achieve staffing efficiencies through service integration and by refocusing these units on core corporate communications, brand, policy, and research activities. The total savings proposed for these three service areas, including this new saving, amount to £903,000, representing a 50% reduction in their total salary budgets. The report acknowledged a risk of reduced corporate grip and oversight on service-specific initiatives, which will be mitigated through improved corporate governance and oversight arrangements.