The East London borough needing ‘exceptional support’ where residents face huge council tax hike

London: An East London borough is in a bit of a pickle. Newham Council is looking to raise council tax by 9.99% to tackle some serious financial issues. They’ve already asked the government for Exceptional Financial Support to help them out.

So, here’s the deal: Newham is staring down a £151 million budget gap over the next three years. A whopping £106 million of that is just from temporary accommodation costs, which the council calls a ‘crippling burden.’ They’re trying to save money by selling off some assets and moving staff around.

They think they can cut that budget gap down to £51 million by 2025/26 if they get the green light to raise council tax. If they do, they estimate it could save them an extra £6 million, which would help even more.

During a recent meeting, Zulfiqar Ali, the finance guy for the council, expressed hope that they could sell off some assets quickly if the government gives them the support they need. He made it clear that this isn’t a long-term fix, just a way to get through the next couple of years.

He also mentioned that they’ve really looked into every possible way to save money and cut costs. If the tax hike goes through, the average Band D property would see their council tax jump from about £1,252.94 to £1,378.23, not counting the Greater London Authority precept.

For those who qualify for the Council Tax Reduction Relief Scheme, their bills could drop by 80%. The mayor, Rokhsana Fiaz, said the budget planning has been tough but thanked everyone involved for their hard work. If the increase is approved, Newham would still have one of the lowest council tax rates in London.

She emphasized that they’re trying to balance their responsibilities to serve residents while also supporting the most vulnerable. The final decision on the budget will be made at a full council meeting at the end of February.