The Cabinet of Newham Council met on Thursday 23 October 2025 to discuss a range of significant issues, including the council's financial position, housing and homelessness strategies, and plans for regeneration and infrastructure. Key decisions included the approval of a strategy to increase affordable temporary accommodation and tackle homelessness, the endorsement of a plan to deliver best value for residents, and the allocation of funding for the Mayer Parry Bridge project.

October Finance Review Report 2025

Cabinet reviewed the council's financial position as of Quarter Two, noting an updated forecast of a £4 million underspend against the General Fund budget. However, the Medium-Term Financial Strategy (MTFS) still indicates a significant budget gap of approximately £53 million in 2026/27, rising to £90 million by 2028/29, even after accounting for substantial savings already agreed. The council continues to rely on Exceptional Financial Support (EFS) from the government, with £51.2 million agreed for 2025/26.

In response to these financial challenges, Cabinet agreed to go out to statutory consultation on changes to the Council Tax Reduction Scheme to simplify and reduce support offered to residents, with the aim of presenting this as a savings option for the 2026-27 budget. They also agreed to launch a public engagement campaign to gather input from residents and stakeholders on the difficult choices facing the council, which will inform the final budget decisions for 2026-27. The capital programme was also subject to reprofiling and budget reductions.

Increasing Affordable Temporary Accommodation Supply and Tackling Homelessness in Newham

A significant portion of the meeting was dedicated to addressing the escalating housing and homelessness crisis in Newham. Cabinet noted that over 7,500 households are currently living in temporary accommodation (TA), the highest figure in England. This situation is exacerbated by rising rents, a shrinking supply of affordable homes, and the freeze on Local Housing Allowance rates. The financial impact on the council is substantial, with TA costing over £100 million annually and contributing significantly to the projected £115 million medium-term funding gap.

To tackle this, Cabinet approved a coordinated and strategic response focused on four key objectives: slowing demand through early intervention and prevention, accelerating permanent housing by expanding access to the Private Rented Sector and deepening partnerships with Registered Providers, reducing costs through acquisitions and long-term leasing, and revising placement policies to increase the use of affordable out-of-borough options. Cabinet also approved up to £1.7 million in additional resources to enable the delivery of an enhanced Homelessness Response Programme and agreed to initiate a comprehensive review of the Council's Social Housing Allocations Policy.

Delivering Best Value for Residents Quarterly Report

Cabinet received the second quarterly update on the council's progress in delivering its Delivering Best Value for Our Residents Plan, developed in response to a non-statutory Best Value Notice received from the government in May 2025. The report highlighted progress in stabilising senior leadership, strengthening governance, and improving services. Key areas of focus include the ongoing transformation of housing services, with tenant satisfaction rising to 71%, and efforts to address the backlog of fire risk assessment actions. The report also noted the development of a new Housing Resident Involvement Strategy and an updated Housing Complaints Policy. Cabinet endorsed the plan and noted the progress made.

Executive Response to the Manor Park Gym- Call-In

Cabinet considered the call-in of its previous decision regarding the Manor Park Gym fit-out. The Overview and Scrutiny Committee had raised concerns about the robustness of financial documentation and the exploration of alternative funding sources. Cabinet noted the recommendations from Overview and Scrutiny and confirmed its original decision to release £2.1 million in capital funding for the gym's fit-out and associated works, and to note that Greenwich Leisure Ltd (GLL) would manage the programme within the agreed budget.

Canning Town Enterprise Hub Strategy and Mayer Parry Bridge Delivery

Cabinet adopted the Canning Town Enterprise Hub Strategic Regeneration Framework (SRF) as a guiding document for the area's development, aiming to establish it as a hub for inclusive growth and green innovation. Crucially, Cabinet also agreed to allocate £4.8 million towards the delivery of the Mayer Parry Bridge, a vital piece of infrastructure that will connect Canning Town with Tower Hamlets. This funding will be sourced from Community Infrastructure Levy (CIL) and Section 106 (S106) agreements.

Former Stratford East Picturehouse at Great Eastern Road, Stratford, London, E15 1BX - Award of Lease Agreement to Operator

Cabinet approved entering into a lease agreement with OFJ London Ltd, trading as Oxygen ActivePlay, to occupy and operate the former Stratford East Picturehouse. Oxygen ActivePlay plans to transform the building into an indoor activity park for families, creating an estimated 60-70 jobs, with over 90% expected to be filled by Newham residents. This decision is expected to generate significant local economic benefits and increase footfall to the area.

Award of Highways Frameworks Contracts 2026

Cabinet approved the award of Highways Professional Services Contracts to Project Centre Limited and Highways Works Contracts to Marlborough Highways Ltd and Kenson Highways Ltd. These contracts, valued at an estimated £12 million for professional services and £150 million for works over a potential six-year period, will ensure the continued maintenance and improvement of the borough's roads and pavements, contributing to safer and more accessible neighbourhoods.

Proposed 5 Year Procurement of Council's Fleet & Plant

A five-year vehicle procurement programme, valued at up to £25 million, was approved to support the delivery of Newham's Air Quality Action Plan and ensure compliance with Ultra Low Emission Zone (ULEZ) requirements. This investment will see the replacement of older vehicles with more fuel-efficient and environmentally friendly options, including a phased introduction of electric vehicles where feasible. A needs analysis will be conducted to identify opportunities to reduce the overall fleet size.

Independent Living Support Service - Permission to Extend Framework Agreement

Cabinet agreed to extend the Independent Living Support Service (ILSS) Framework Agreement, Home Care Dynamic Purchasing System, and the Dynamic Purchasing System platform until 31 May 2027. This extension is necessary to ensure the continuity of essential care services for approximately 2,000 residents while a new procurement exercise is undertaken.

Procurement of Municipal Insurance Cover

Cabinet approved the commencement of the procurement for municipal insurance cover for the next three years, with an option to extend for a further two years, at an estimated value of £2.7 million per annum. This procurement will ensure the council complies with statutory obligations and demonstrates responsible risk management.

Annual Complaints Report for 2024-5

Cabinet noted the council's performance in complaints handling during the fiscal year 2024-25. Despite an increase in complaint volumes, driven by major service changes and ongoing projects, performance has been maintained with improvements in Stage 2 complaint resolution and Member Enquiry responsiveness. The report highlighted a strong performance in the Local Government and Social Care Ombudsman's satisfactory remedy rate, ranking Newham fourth highest in London. Improvement actions for 2025-26 will focus on driving performance and embedding early resolution for residents.

Building a Fairer Newham Performance Report (Period 5 25/26)

Cabinet noted the progress made in delivering the Building a Fairer Newham Corporate Delivery Plan. The report detailed achievements across key priorities, including a healthier Newham, inclusive economy, safer communities, and improved housing services. It also highlighted ongoing challenges, such as pressures in adult social care and rising rough sleeping figures, and outlined the steps being taken to address these.

Appointments to Outside Bodies

No appointments to outside bodies were announced at this meeting.

Minutes of Previous Meeting

The minutes of the Cabinet meeting held on 16 September 2025 were agreed as an accurate record.

Apologies for Absence

Formal apologies for absence were received.

Declarations of Interest

Councillor Blossom Young, Cabinet Leader for Council Housing Improvements, declared a business interest in item 11, relating to the Manor Park Gym, and stepped out of that conversation. No other declarations of interest were made.