Newham Budget 25/26: Council proposes 8.99% Council Tax rise while pledging upto 80% tax relief for low-income families

Newham Budget: Council proposes 8.99% Council Tax rise
CREDIT: Photo by Alaur Rahman/Pexels

Key Points

  • Newham Council proposes an 8.99% Council Tax increase as part of an application for Exceptional Financial Support from the Government.
  • Council Says: Council tax discount of up to 80% for low-income families to mitigate financial strain on the most vulnerable residents.
  • Newham to maintain the lowest Council Tax in Outer London despite the increase, Council claims
  • Focus on regeneration projects including Carpenters Estate and Stratford Island development.
  • Commitment to community safety, cleaner streets, and improved public services.
  • Revised Corporate Delivery Plan prioritises vulnerable residents and key neighbourhood improvements.
  • Full Council to vote on the Budget on 27 February 2025.

Newham Council has proposed an 8.99% increase in Council Tax as part of its financial strategy while promising up to 80% tax relief for low-income households.

Why is Newham Council increasing Council Tax?

Newham Council’s Cabinet has approved a Budget proposal that would see an 8.99% rise in Council Tax, pending approval from the Full Council on 27 February 2025. The increase is part of an application for Exceptional Financial Support from Central Government, aimed at stabilising the council’s finances.

Despite the hike, Newham will still have the lowest Council Tax rate among Outer London boroughs and will remain among the seven lowest in all of London if the proposal is passed.

What support is available for struggling residents?

Acknowledging the financial pressures on residents, the Council has also proposed an up to 80% discount on Council Tax for the borough’s lowest-income families. Mayor Rohksana Fiaz OBE stated that while the increase is a difficult decision, protecting the most vulnerable remains a priority.

“We recognise that any increase in Council Tax is a challenging decision, and our priority will always be to support the most vulnerable members of our community while we Build a Fairer Newham,” said Mayor Rohksana Fiaz OBE.

The Council confirmed that its Council Tax Reduction Scheme will remain in place, ensuring that residents who need assistance continue to receive it.

What regeneration and community projects are planned?

The updated Corporate Delivery Plan highlights a continued focus on:

  • Major regeneration projects, including the redevelopment of Carpenters Estate and Stratford Island.
  • Community safety initiatives to improve safer neighbourhoods.
  • Street cleaning services, ensuring cleaner streets across the borough.

Mayor Fiaz reaffirmed the Council’s commitment to improving the quality of life for all residents.

“At the same time, we are focused on delivering real improvements for all residents—whether that’s cleaner streets, a transformed customer service experience, or advancing major projects like the Carpenters Estate and Stratford Island development,” she said.

What happens next?

The Full Council will vote on the Budget proposal on 27 February 2025. If approved, the tax increase and financial support measures will come into effect, shaping Newham’s fiscal approach for the year ahead.

Despite economic challenges, the Council insists that its commitment to ‘Building a Fairer Newham’ remains firm, balancing financial sustainability with social welfare.

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