The Cabinet of Newham Council met on Thursday, 8 January 2026, to discuss the draft budget proposals for 2026-27 and received an update on the CQC assessment of adult social care. 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

Councillor Rita Chadha, Cabinet Member for Health & Adult Social Care and Transforming Newham for the Future, presented a supplementary agenda item regarding the Care Quality Commission (CQC) assessment of Newham Council's adult social care services. The report indicated that the council's adult social care services require improvement, scoring 62%, just below the good threshold of 63%. Councillor Chadha expressed disappointment but also pride in the work achieved, noting that the findings were not surprising and that the council is in ongoing discussions with the CQC. Fiona Connolly, Permanent Corporate Director of Health and Adult Social Care, added that the CQC framework is still developing and that feedback is being provided to the regulator. She also highlighted that this was the first such comprehensive assessment in nearly a decade, since 2008. The Cabinet resolved to note the CQC report and agreed that a fuller report would be presented at a future Cabinet meeting.

2026/27 Draft Budget Proposals

The main focus of the meeting was the 2026/27 draft budget proposals, aimed at achieving financial sustainability and delivering a Fairer Newham . Mayor Rokhsana Fiaz OBE acknowledged the challenging and complex nature of the budget-setting process, particularly in light of increasing demand for services like temporary accommodation due to population growth and structural issues in the sector. She highlighted the significant achievement of presenting a balanced budget for 2026-27 without needing exceptional financial support, a marked improvement from previous years. The Mayor emphasised the council's commitment to avoiding insolvency and serving residents with value for money, aligning with the corporate plan's outcomes. She also noted the positive provisional local government financial settlement received from the national government, which has allowed for a balanced budget and projected surpluses in subsequent years. However, she cautioned against complacency, stressing the need to deliver on savings proposals and maintain financial resilience.

Councillor Zulfiqar Ali, Statutory Deputy Mayor and Cabinet Member for Finance and Resources, presented the detailed budget proposals. He described the budget as a turning point for the council, moving away from a decade of austerity and underfunding. He attributed the improved financial position to the new Labour government's fair funding review, which he stated finally recognised Newham's population growth, housing pressures, and the depth of deprivation. Councillor Ali reported that the provisional settlement represented a 13% increase in core funding, which, if applied earlier, would have provided Newham with significantly more resources. He confirmed the balanced budget for 2026-27, with projected surpluses of £13 million in 2027-28 and £15 million in 2028-29. He reiterated that the council would not be applying for exceptional financial support, signifying a move from crisis management to stability. The savings identified in the budget include £15 million in temporary accommodation costs through prevention and renegotiation, and a further £23.5 million in developed savings, building on previous efficiencies. The budget also includes investments in adult social care (£15 million), early health, and youth services, while protecting community services, cleaner streets, and safer roads. A 4.99% council tax increase, including the 2% adult social care levy, is proposed, which Councillor Ali stated would still leave Newham as one of the lowest council tax authorities in outer London.

The Cabinet also heard from other Cabinet members regarding their directorates' contributions to the budget. Councillor Sarah Jane Ruiz, Cabinet Member for Children's Services, Education & Sustainable Transport, highlighted the emphasis on prevention in children's services, enabling children to return home safely and leading to savings. She also noted the careful management of school budgets, with only one school predicted to close. Councillor Charlene McLean, Cabinet Member for Resident Engagement & Resident Experience, addressed concerns about library services, clarifying that while a review was undertaken to achieve savings, there are currently no plans to close any of Newham's 10 libraries. She emphasised that the library review focuses on outcomes and innovative delivery methods. Councillor Dr John Whitworth, Cabinet Member for Air Quality, Climate Emergency & Environment, reported that resources for public realm services have been protected, with additional funding for neighbourhood improvements and the introduction of fortnightly general waste collections alongside weekly food waste collections. He also highlighted the financial success of the Climate Action Team, which has consistently brought in more funding than it has cost the council. Councillor Amar Virdee, Cabinet Member for Community Safety, Housing Need, Homelessness & Private Rented Sector, spoke about the significant savings achieved in temporary accommodation, crediting the resilience and agility of the Housing Needs team. He also mentioned the ongoing reforms under the Renters Act to ensure long-term sustainability.

The Cabinet approved the draft 2026/27 Revenue Budget proposals, the revised Medium-Term Financial Strategy (MTFS) position, the intended allocation of the Dedicated Schools Grant and Public Health Grant, an average 4.8% rent increase on council-owned accommodation, and the draft Capital Strategy. They also approved the Community Infrastructure Levy (CIL) Infrastructure List 2026/27 and noted the reduction in funding for the People Powered Places programme to allow for environmental public realm improvements. The Cabinet resolved to receive and approve the final budget proposals in February 2026, following scrutiny and engagement.