Havering Council Tax Set To Rise By Almost 5%.

Local democracy reporter Sebastian Mann today writes:

Council tax in Havering is set to go up by almost 5% as the council looks to survive financial turmoil.

The amount residents pay monthly will go up by 4.99%, with 2% going towards adult social care.

For an average Band-D property, that will mean an extra £9 on their monthly bills, bringing the annual levy up to £1,823.

The hikes were approved at a meeting of Havering Council’s cabinet last night (5th February), and will be formally signed off at a full council meeting at the end of the month.

The council says that it has been “failed” by the new government and its needs are not being addressed.

Like many authorities, it is facing growing pressures on its housing sector and social care requirements.

Last year, the town hall had to borrow £32.5million to plug a black hole in its budget. It is now expected to go into the next financial year with a shortfall of £71m, and will need to borrow a further £89m.

Councillor Chris Wilkins, the cabinet member for finance, added that the £40m extra funding allocated by the government was “disappointing”.

He said growing housing and social care pressures nationally meant other councils could find themselves facing similar difficulties.

Due to a borough-wide shortage of homes, families are often kept in hotels or bed-and-breakfast style accommodation.

These nightly schemes are very costly for Havering, which ended up overspending on housing by £6.1million last year.

Labour leader Keith Darvill said tackling the housing crisis needed to be a priority for the town hall.

Various new housing schemes are underway across the borough, but projects such as a 1,380-home estate in Waterloo Road have been hit with delays due to ballooning

He said the council “needed to ensure it brings forward as many new homes as possible”. He said: “It’s a long-term thing, but we absolutely need to do that.”

During the meeting, the cabinet also approved around £5m in new cuts for the coming year. On top of redirecting agency funding, the council will also “restructure” its resources department and reduce its books fund, which will save around a combined £760,000.

The town hall is also set to increase its rents for tenants by 2.7%, and its fees and charges will go up by 2.7%.

The hikes were approved at a meeting of Havering Council’s cabinet last night (5th February), and will be formally signed off at a full council meeting at the end of the month.

An increase of 4.99% is the highest a council can go without seeking a public referendum or special permission from the central government.

The borough saw similar tax rises last year as the council struggled to balance its budget.

The new rates will come into effect on 1st April, once approved.

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