Community Opposed And Unpopular HRA Budget That Closes Libraries Barely Scrapes Through By One Vote.

The focus of the coming year will be building “hundreds” of new homes, to take pressures away from temporary accommodation, and making further cuts “where we can,” the authority says.

Local democracy reporter Sebastian Mann reports.

Havering Council’s budget for the coming year barely scraped through after opposition councillors rallied to oppose it.

The £204million budget for 2025/26 will see council tax shoot up by 4.99%, council rents increase by 2.7%, and the closure of three much loved libraries.

The town hall, controlled by the Havering Residents Association (HRA), has also agreed to borrow a further £88m to offset a £71m shortfall in its finances.

It says that eight-figure sum, which would be paid off over two decades, will cover the “worst case scenario”.

The budget was passed by 25 votes to 24 at a budget-setting meeting last night (26th February), with mayor and HRA councillor Gerry O’Sullivan casting the tie-breaking vote.

The focus of the coming year will be building “hundreds” of new homes, to take pressures away from temporary accommodation, and making further cuts “where we can,” the authority says.

Council leader Ray Morgon called the budget the hardest in Havering’s 60 year history.

He said the £88m bailout would prevent the council from increasing council tax by “sixty-odd per cent,” which “no councillor wanted to do”.

He told councillors there was “no alternative” to accepting the loan and this would be the case “every single year” until the government altered its funding formula.

Labour, Conservative and independent residents’ group councillors all proposed alternative budgets they said would prevent the closure of libraries in South Hornchurch, Gidea Park and Harold Wood.

Their closure will save the council around £300,000 a year – and avoid around £850,000 in repairs – though opposition councillors say the move will harm communities.

Both groups said the libraries could be “saved” by delaying the implementation of a new waste policy, which will cost around £1.5m.

The Tories also placed a higher focus on crime prevention, tabling £160,000 for two extra police officers and £500,000 to boost CCTV coverage of parks.

Each group’s motion was supported by fellow opposition members, with Conservative councillor David Taylor remarking there was “something special and really wrong [happening] to unite Havering Conservatives and Labour.”

None of the amendments were passed, with each failing by 30 votes to 18.

Chris Wilkins, the cabinet member for finance, said cutting costs would be the “main focus” over the next twelve months.

He said the town hall would continue to “lobby hard” for fundamental changes to the way councils are funded. He previously said the council had been forced to borrow so much because it did not receive the “right funding” to begin with.

In December, the government announced that Havering would receive a settlement of £40m for 2025/26 – less than half of what it will borrow. The town hall is also projecting to raise £164m through council tax.

Labour leader Keith Darvill said that, while he supported the government’s upcoming funding review, he was “not optimistic at this moment”.

The council cannot exceed the £88m it has been loaned, and would be forced to declare effective bankruptcy if it did.

At that point, government-appointed commissioners would take over and stringently cut services to bring the coffers back in line.

HRA councillor Graham Williamson said the council was “between the Devil and the deep blue sea,” adding: “We either take [the loan] or let someone else come in [make cuts].”

The rise in council tax will come into effect on 1st April.

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