Havering’s Cabinet agree another challenging budget

This comes after the Government announced a three-year settlement for all local authorities.

Despite a better outcome from the Government, it is still not enough to close the budget and there is a gap of £65.9m which rises to £77m on a worst-case basis.

Set against this stark background the Council has continued to do all it can to make savings and has found over £40 million since the current Administration took office.  

The budget includes the impact of the fair funding review which will provide increased grant funding of around £39m over the three years of the medium-term plan.

This funding however is far short of what we need even with £10m of savings proposals and the Council Tax increase.  

For the next financial year, Cabinet have agreed the proposed 2.99% increase in core Council Tax for 2026/27 and the proposed additional 2% Council tax increase for the Adult Social Care Precept in line with the referendum limit approved by Government.

This means the proposed Council Band D basic amount of Council Tax for 2026/27 will be £1,914.15 from April.

This does not include the Greater London Authority precept.

The Council continues to see increased pressures in Housing Demand, Children Services and Adult Social Care.

It has tried all it can to manage these, but they continue to rise.  

Havering’s population continues to go up and has seen the biggest increase in the children’s population in London.

It also has one of the largest growth in 0-4 children’s population in the country.  

But the Government grant does not keep pace with this. This has also meant increased pressure on social care and school places.

The cost of adult social care and the increase in the complexity of care have also continued to go up.

Despite this the Council has continued to deliver vital services to residents that include:

• Improving how we work better with our communities through engagement, working with our faith forum and other groups. Also, by building resilience and volunteers to build pride in our neighbourhoods.
• Worked hard to make the borough safer through improving the areas people live, continued investment in S92 police officers and upgraded CCTV as well as better joint working with police.
• Safeguarded green spaces such as village greens and continued to be recognised for excellent parks with green flags.
• Continued to deliver new homes and accommodation such as sheltered housing and worked on ways of reducing temporary accommodation and homelessness. 
• Improved the safety of our social housing and continued improvements to the homes of our residents.
• Supported businesses through campaigning for residents to buy local by promoting our high streets.
• Continued to celebrate success through the annual Small Business Awards. Listened to Hornchurch businesses and are consulting on a new BID. Also developed a clear plan for Romford through the new masterplan. 
• Worked hard in standing up for the borough through lobbying for our finances, infrastructure and transport improvements and being part of key partnerships and groups in London to make sure our voice is heard. 
• Reviewed street cleaning and other environmental services to improve them and make it easier for residents to report problems.
• Continued to keep the borough’s roads and pavements in good condition as recognised by Department for transport. 
• Launched Havering London as a legacy of the borough of culture bid to help build on our cultural offer in the borough. Plus, investment in football and tennis courts and introduction of padel courts. As well as recording and safeguarding our cultural assets such as Tithe Barn 
• Ruled that Arnold’s Field, Launders Lane in Rainham is contaminated land and now working on a solution to stop the fires. 
• Supported many residents through cost-of-living support as well as delivery of School Holiday Meal Scheme and the Holidays and Activities Fund. 
• Offered 93% of pupils their first top three choices of school, 90% of primary school pupils offered their first choice of school and schools in the borough rated good or outstanding under previous graded Ofsted rating. This was commended by the Mayor of London.

Councillor Ray Morgon, the Leader of Havering Council, said:

“I am starting to sound like a stuck record here, but we continue to see pressures on our budget that are outside our control.

"Indeed, we have seen a better settlement from the Government, but it is too little too late. It does not make up for years and years of underfunding. 

“Sadly, we have to continue borrowing from the Government to make up the gap so we can agree a legally balanced budget.  

"Officers have found some additional savings moving forward but we are pretty much at the point where we have now sold the sofa after looking down the back of it for any loose change. 

“To add to the burden, we still must take out a loan and pay it back with interest and the cost of financing future years of Exceptional Financial Support will increase to 30% of our total budget gap by 2028/29.

"We will, of course continue to lobby on this issue together with our overall case to Government, and officers have requested a further meeting with the secretary of state.   

“This additional burden on our budgets means we are caught in a vicious cycle.

"I am therefore calling on ministers to use their common sense here.

"They need to at least stop the pressures of the interest payments to give us a fighting chance.

"Otherwise, there is no way in meeting their deadline of breaking even on our budget after three years.

“I also don’t think it is fair that Havering Council taxpayers should also foot the bill as we already have the fifth highest Council tax in London.

"However, we have done all we can to ensure vital and valuable services continue to be delivered to residents to make sure they do not suffer at the expense of the successive Governments who have repeatedly failed the borough.”

The budget will now go to Full Council for final agreement.