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Newham Council, led by Mayor Rokhsana Fiaz, is grappling with a formidable financial crisis as the 2026 local and mayoral elections approach. The borough faces a projected budget gap of around £175 million over the next three years, with a staggering £100 million directly attributed to the soaring costs of housing homeless families. The average nightly rate for temporary accommodation surged from £42.16 in April 2021 to a peak of £158.23 in November 2023.
In response to these pressures, residents saw an 8.99% council tax hike for the 2025/26 financial year, as Newham was granted special government permission to exceed the usual 5% cap. The council has identified £70 million in savings and income measures to help bridge the financial divide.
The borough's housing crisis is profound, with 1 in 20 Newham households (6,662 households as of late 2024) in temporary accommodation – nearly double any other London borough and triple the London average. This represents a 145% increase since 2013. The average house price in Newham in May 2025 stood at £420,000, while average private rents reached £1,851 in June 2025, an 8.3% increase year-on-year.
Further highlighting housing concerns, Newham received a C4 rating from the Regulator of Social Housing in October 2024, the worst possible, citing serious non-compliance and issues like overdue electrical condition tests and inadequate damp and mould management in social housing. The council has committed to an action plan, including an £18 million scheme to improve existing homes.
Newham is one of London's most diverse boroughs. While 74% of residents are from Black, Asian, and ethnic minority communities, more granular 2021 census data shows the largest groups are Asian (42.2%), White (30.8% - with White British at 15% and Other White at 15%), and Black (17.5%). Socio-economic challenges are significant, with more than 40% of children living in poverty across the borough, and even higher rates in specific wards like Maryland (36%) and Little Ilford (35%).
Voter turnout remains a challenge, with only 28% participating in the 2022 local elections, a decrease from 37.68% previously. Turnout for the 2021 London Mayoral election in Newham was 35%, while the 2019 General Election saw 62% engagement.
Following a "Best Value Notice" issued by the Ministry of Housing, Communities and Local Government (MHCLG) in May 2025, Mayor Fiaz has pledged "action, not excuses." The council is actively working with the MHCLG, finalizing an action plan with the Regulator of Social Housing, and has approved changes to its constitution to improve governance and scrutiny. A "transformation and improvement board" with independent experts is also being established across key service areas.
Adding to its strategic direction, Newham Council approved its "Newham Growth Plan" on July 22, 2025, focusing on inclusive and sustainable development with a "growth with a purpose" ethos. This builds on the borough's "Community Wealth Building" agenda. Furthermore, Newham launched the UK's first Just Transition Plan in February 2024, aiming to achieve net-zero targets while enhancing equity for residents and adapting to climate change, including seeking over £800 million in government funding for social housing retrofits.
Meta Description: Newham faces a £175M budget gap, rising homelessness, and critical housing issues ahead of the 2026 election, with a recent 8.99% council tax hike.
Meta Keywords: Newham, election 2026, financial crisis, housing crisis, Rokhsana Fiaz, council tax, homelessness, local government
