The Financial Pressures of Havering Council

Havering Council, similar to many other local authorities, faces significant financial challenges primarily due to insufficient government funding. The demand for social care services has been on the rise, particularly for people with disabilities, children under the councils’ care, and support for the elderly. These challenges are exacerbated by an ageing population and a higher growth rate of children compared to other areas, significantly impacting the Council’s ability to maintain essential services and balance its budgets. Additionally, there is a growing number of individuals with complex needs requiring support from the council.

Councils receive an annual Grant Settlement from the government, but this funding has decreased significantly over the years. As a result, local authorities increasingly rely on the Council Tax paid by residents to fund social care. In Havering, a staggering 70% of the Council Tax now goes towards social care, further burdening the council due to having the oldest population in London and the second-highest increase in children across the UK. Another unique challenge for Havering is the higher number of care and nursing homes compared to other boroughs (54 versus as few as 9).

This leaves only 30% of the collected Council Tax to fund all other essential services, including over 700 additional programs. Consequently, Havering Council faces limited financial resources to meet the diverse needs of its residents. The challenge lies in balancing budgets while addressing the growing demands and expectations of the community.

However, these challenges extend beyond social care funding. There is an increasing number of homeless people in the area, along with a higher demand for housing. Changes in planning law have resulted in delays for major planning projects, as councils await the final details following the Grenfell fire incident. For instance, in Havering, the Waterloo Road development has been suspended, further intensifying pressure on the housing system and the unmet need for family housing.

Pressures on highways maintenance are also a concern, with funding coming from car parking charges rather than Road Tax. Although the government allocated £200m for potholes, Havering did not receive a share. Instead, the government advised that their share would come through the GLA, which only funds travel safety schemes. Consequently, car parking charges are now being used to address issues like potholes, pavement repairs, and road resurfacing.

Similar to other authorities, Havering Council needs to explore various strategies and resource redistribution to address these challenges. The Council has already undertaken a restructuring process to create a more efficient organisation, focusing on people, place, and resources.

It is essential to raise awareness among residents about the financial struggles faced by the council. This will help foster better understanding among the community members about the reasons behind certain decisions and the necessity for change.

The Havering Daily reached out to Councillor Gillian Ford, Cabinet Member for Adults and Health for her thoughts on the challenges the council face.

Gillian said. “I am deeply concerned about the financial challenges Havering Council is facing. The increasing demand for social care services, coupled with insufficient government funding, has put immense pressure on our ability to provide essential care for the elderly, individuals with disabilities, and children in our care. We are working tirelessly to find innovative solutions that will safeguard the well-being of our residents while maintaining a balanced budget and delivering the current demand pressures. The real need and ask is for the government to fund social care centrally and not through our Council Tax placing additional pressure on our residents.”

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