Havering Council Considers Increase In Council Tax After Another Tough Year.

Havering Council’s Cabinet will meet on Wednesday 5 February to agree next year’s budget.

Once again it has been another tough year where the Council has seen continued increased costs from delivering social care and homelessness services.

Despite seeking further savings and efficiencies, as well as receiving a slight increase from the Government through the recent finance settlement, the Council is now seeing a £71 million gap in its budget. This includes carrying over £34 million pressures from last year.

Cabinet will also consider a proposed increase of 4.99 per cent in council tax and 2.7 per cent in fees and charges. Alongside this, they will consider the separate increase in rents of 2.7 per cent for council tenants.

In a consultation with residents, where 600 responded, 55 per cent said that they would pay 5 per cent or more in council tax, with 41 per cent saying they would not want to see an increase.

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

“Despite constant lobbying and meetings with Government ministers and civil servants, we have not been given the support we need to bridge the gap from last year. The costs from ongoing pressures have not gone down and we are now seeing a worse scenario of a £71 million budget gap.

“The last government settlement failed to help those Councils most in financial need despite all the earlier rhetoric about doing so. Over the years, we have seen a substantial reduction in Government funding and sadly, it has been local residents who have had to make up a large part of the deficit.

“This has led to us seeing the fifth highest council tax in London. This is not fair and sustainable.

“We are however doing all we can to look at solutions. This includes bringing in our own housing solutions to reduce homelessness and the costs associated with paying for hotels and temporary accommodation. 

“In social care, we are looking at using AI to help improve our processes and cut out time doing basic tasks so we can concentrate on providing the care our residents need.

“We are also looking at the cost of the care market and working more closely with the NHS to support more people to go back into their own homes therefore saving on care home costs.”

Cabinet will also see that despite the slight increase in rent for council residents, there will be some decreases in service costs and a commitment to deliver £18 million of improvements to council homes.

In addition, the Council will continue to invest in safety with a new CCTV system coming online and another year of funding for the section 92 police officers.

Parks will continue to be maintained and the Council will carry on building homes for Havering residents through a number of different regeneration schemes

The council will also continue to invest in our roads, support local businesses through a new campaign, and ensure help remains for our most vulnerable through the cost of living challenge.  

The Leader went on to say:

“The Council though, won’t grind to a standstill. Services will continue for residents despite the budget gap. Staff and bills will still be paid. To do this, last year we had to agree a Government loan (Capitalisation Directive) of £32.5 million pounds.

“This year, to ensure we once again have a balanced budget, we will have no choice but to apply for another Government loan of at least £71 million. It is either that or a massive increase in council tax. 

“We will not let up and make sure we fight for the borough and continue lobbying the Government for a common sense solution to the current funding crisis that both provides enough money to meet demand nationally but also is allocated based on current need, not on some outdated funding formula that takes no account of our current pressures.”

Following Cabinet review and approval, the budget will be considered for agreement at the Council Tax Council on Wednesday 26 February.

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