Havering Council has outlined budget plans for next year .
It follows significant steps towards improving its financial position, with its projected budget gap for 2027/28 reduced by more than £26 million since the budget was set – with £16 million since June under the new Administration.
Cabinet has agreed a report setting out the next steps towards balancing the Council’s budget for 2027/28, including over £13 million in proposed savings and efficiencies to help reduce the remaining shortfall.
The report marks the start of the formal budget-setting process and follows significant progress in strengthening financial controls, reviewing spending and reducing the amount of exceptional financial support (loan) the Council expects to need from Government.
In February, the Council faced a projected budget gap of £81 million for 2027/28. This has now fallen to £55 million, following improvements in the Council’s financial position, tighter spending controls and the identification of further savings.
The Council has also reduced its forecast requirement for exceptional financial support in the current financial year from £77 million to £54 million, meaning it expects to need substantially less borrowing than originally anticipated.
Despite these improvements, Havering continues to face considerable financial challenges, driven largely by rising demand and costs for adult and children’s social care, temporary accommodation and other statutory services.
Further savings to tackle the budget gap
The Medium Term Financial Strategy (MTFS) outlines around £13 million of proposed savings for 2027/28, including £11 million in newly identified proposals.
Details of individual consultations, including how residents can participate, will be announced separately.
Councillor Keith Prince, Leader of Havering Council, said:
“We have reduced our projected budget gap by more than £26 million and substantially cut the exceptional financial support (loan) we expect to need from Government. Stronger financial discipline and closer scrutiny are making every pound of taxpayers’ money count.
“A significant gap remains, and difficult decisions lie ahead. We will keep challenging spending, finding efficiencies and prioritising the services residents need most. Where proposals affect residents, people must have the opportunity to understand the changes and have their say before decisions are taken.
“The Fair Funding Review has finally recognised Havering’s underfunding, but residents should not have to wait years for the funding they deserve. We will keep pressing Government for that funding and the cancellation of outstanding borrowing and loan interest costs. Sustainable finances are about more than balancing the books: they underpin our Havering 2040 Vision: Creating London’s Super Suburb, growing our economy and improving services.”
Council Tax for 2027/28
The report also outlines an assumed Council Tax increase of 4.99% for 2027/28, comprising 2.99% for general services and an additional 2% to help fund adult social care.
This is subject to a final decision, with the Council Tax level to be considered as part of the final budget-setting process in early 2027.
Engagement events
The Council will be holding two public engagement events where residents can find out more about the budget setting and learn how the proposals may affect them.
- Tuesday 24 November, 6pm – 7:30pm, Havering Town Hall, Romford
- Tuesday 1 December, 6pm – 7:30pm, Online (details to be announced separately)