A Serious Word for Labour Councillors

The Guardian is not a journal that we would normally go to for financial advice. Or anything else for that matter.

But this leading supporter of any crackpot political theory that happens to be in fashion came out with a surprisingly pertinent statement recently. Reflecting on the exceptional Financial Support packages that have been agreed by government, they noted, “The EFS approach goes against good accounting practice, and is seen by critics as a short-term fix that avoids effective insolvency by loading councils with debts.”

Newham is not alone, some 30 councils have had EFS support.

We recall that Cllr Zulfiqar Ali was atypically reticent at the second Group meeting in February when asked about a further 10% of council tax in 2026. We have assumed that this means that Newham will be seeking similar increases next year. In addition, they now have permission to sell off some £16m of assets. To state the obvious, they can only be sold once.

The current situation has Newham selling assets, increasing taxes and continually seeking government bailouts.

What the mayor consistently fails to do is mange the levels of spending.

In part, it is probably too late. She came into office with ‘good’, or if not ‘good’ ideas, certainly spending plans that were popular among her supporters. The financial chickens have come home to roost. Having ditched all of the Wales transformation measures, she now has very few tools with which to cut costs.

We have seen that those members of the council who have sought to address the issue have been harangued and bullied by the mayor and her cabinet colleagues.

The problem for Labour in Newham is not that the mayor is incompetent, but that certain members have pointed out her failings. It is these councillors, not the mayor’s ineptitude that is seen as the problem by the Labour Party.

The time is coming when all of the councillors will have to address one simple question. What is more important, ensuring that you have a seat in the next election or ensuring that the rot stops in Newham?

And if it is the latter, what are you going to do about it?