Mayor of Newham, Rokhsana Fiaz OBE calls for urgent government action on funding, housing, and climate change challenges.
As the elected Mayor of Newham, I am tasked with overseeing a borough that is grappling with urgent challenges necessitating immediate and collaborative action. Addressing critical issues such as funding, housing, climate change, poverty, and the pressures of the cost of living, we acknowledge the crucial role of government, businesses, and communities working together to devise solutions.
Funding remains a paramount concern for local government, particularly in light of a perfect storm of government underfunding and escalating costs driven by inflation, the cost of living, and the rising demand for services. In Newham, the disparity between needs and funding over the past 14 years has resulted in a staggering £60 million shortfall, severely impacting essential services. With over two-thirds of our income reliant on government grants, the recent marginal increase of £3.7 million for the upcoming year falls short, necessitating substantial savings in 2024/25. While frontline services have been safeguarded, the lack of a sustainable approach to funding from the government will substantially impact service provision.
Mayor of Newham Urges the UK Government to Address Financial Challenges
To tackle this financial crisis, I urge the next government to grasp firmly the financial challenges faced by councils; we require long-term financial settlements that ensure real terms growth in funding. Only through such measures can we bridge the gap created by the cumulative loss of hundreds of millions of pounds since 2010.
The housing crisis poses another significant challenge. Despite concerted efforts to bolster our housing stock, the demand for social rent homes far exceeds supply. With over 37,000 households on the housing waiting list and fewer than 600 homes becoming available annually, the need for action cannot be overstated. While commendable progress has been made in constructing genuinely affordable homes in Newham under my administration since 2018, more support is imperative.
The government must empower us with the necessary tools and resources to deliver new homes for social rent; by leveraging available sites across Newham, tens of thousands of new homes could be created with strategic investment in infrastructure, connecting communities to high-paying jobs in London.
Furthermore, the exorbitant costs associated with subsidising unaffordable rents to landlords perpetuate the cycle of homelessness and housing insecurity. Despite facing the worst crisis nationally, Newham’s share of the Homelessness Protection Grant has seen a meagre increase, failing to address the disproportionate burden with demand far outstripping supply. It is imperative that the government acknowledges the severity of the housing crisis, which undermines community wellbeing while exacerbating mental health issues and economic inequality.
Climate Change Impacts Must be Mitigated
The climate emergency also looms large, necessitating concerted efforts to mitigate its impact. Newham has recently embarked on its Just Transition Plan, aimed at achieving net zero emissions, improving air quality, and promoting sustainable transport alternatives. Through this plan, we envision a future where our communities can seize the emerging opportunities from the green transition, creating a sustainable future for generations to come.
A New Community Wealth Building Model
Poverty remains an entrenched challenge in Newham, with over half of children growing up in poverty. In response, I have embraced a Community Wealth Building Model, which aims to retain the wealth generated by growth in our local communities by paying the London Living Wage, cracking down on unscrupulous landlords, adopting better procurement practices, and establishing the first Council-led Employment Rights Hub in the country. Furthermore, our COVID-19 recovery efforts underscore the imperative of addressing underlying structural inequalities, emphasizing the need for inclusive economic models that prioritize community wellbeing.
The urgent resolution of Newham’s longstanding housing crisis demands a multifaceted approach, supported by genuine government commitment and action to enhance our ambitious housing delivery programs, increasing housing availability, alleviating financial strains caused by housing challenges, facilitating community wealth building for residents, and ensuring the provision of high-quality services that residents rightfully expect and deserve.
To gain more insight on how local councils have previously responded to government funding, read our article here.