Havering’s councillors agreed the budget for the next financial year at a late meeting on Wednesday 4 March 2026.
This comes after the Government announced a three-year settlement for all local authorities.
Despite a better outcome from the Government, councillors heard that it is still not enough to close the budget and there is a gap of £65.9 million which rises to £77 million on a worst case basis.
This means that the Council has had to apply for further Exceptional Financial Support to close this gap.
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 £39 million over the three years of the medium term plan.
This funding however is far short of what Havering needs even with £10 million of savings proposals and the Council Tax increase.
For the next financial year, Councillors have agreed a 2.99 percent increase in core Council tax for 2026/27 plus an additional 2 percent 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.
This is set against on-going pressures from Housing Demand, Children Services and Adult Social Care.
This is because 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 to 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 the following.
- 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 the number of people in 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 Business Improvement District (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 percent of pupils their first top three choices of school, 90 percent 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:
“We continue to be in unchartered waters with our finances.
"Despite this staff have worked hard to try and find further savings and manage the pressures that continue to increase costs.
“We are pleased that the Government has given us more money, but this does not help us balance the books.
"The years of underfunding mean we are fighting a rear-guard action, and any savings we have made are still not enough to make up for this.
“So, unfortunately, we must continue with Exceptional Financial Support and ask for an increase in the current loan which the Government has granted.
"This ensures we have the money to draw upon to close the gap in our finances.
"However, this comes with interest payments that adds to our pressures.
“Alongside this, the increased funding from the Government comes with a caveat, that we need to balance the books at the end of the three years.
"This is not achievable in the current circumstances so we continue to lobby and talk to them about what can be done to help us achieve it.
"For example, scrapping the interest payments on the loans.
“Despite all of this, we have tried to maintain our services at the levels residents expect.
"I know there will always be those who are not satisfied, but I feel we have done the best we possibly can despite the lack of finances.
"Indeed, I feel we have a lot to be proud of and our priorities have always been that it is about putting our residents first.”
Council tax bills will now be sent to residents.