Council tax in Newham will rise by 3.99 per cent from April to pay for more youth services and rough sleeping provisions.
The borough's budget was agreed at a meeting this week, where councillors claimed that the rise was needed to protect frontline services.
Cabinet member for finance Cllr Terry Paul said Newham had seen a £200million cut in central government funding since 2010.
"This is a three year budget for stability," he said. "It clearly sets out our priority to protect the borough's young people and enhance our economy, environmental and social justice priorities.
"It seeks to maintain our services and reverse the decline in our youth services."
The budget includes a £1.2m investment to open four new youth zones and an additional £1.4m for tackling rough sleeping.
The local authority faces have to make more than £30m worth of cuts over the next three years.
Cllr Paul added: "We will not be defined by austerity and we are trying to do our best in tough circumstances for our residents."
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