Housing And Adult Social Care Already Pushing Havering Council To A Budget Overspend.

Cash-strapped Havering Council is already predicting budget overspends in the millions for the current financial year, writes Local Democracy reporter Sebastian Mann.

At the end of the first financial quarter, the town hall is projecting a total overspend of £1million by the year’s end, though it will need to draw on a ‘worst-case-scenario’ contigency fund of £18m to stay afloat.

Top councillors have been told Havering is looking at a £1.8m overspend in its housing budget and £2.3m in adult social care.

It is also looking at going over its ‘ageing well’ budget – aimed at supporting older residents – by £1.1m due to an uptake in clients and its resources budget by £1.5m, according to a report published this week.

Housing and social care have long been the greatest financial pressures on the council, which is typical of many local authorities in London.

Last year, Havering went over its housing budget by £6.6m and its overall ‘people’ budget – which covers all of the council’s social policies – by more than £20m.

In September, 23 families will be moving into costly temporary housing, such as hotels or bed-and-breakfast-style accommodation – a move the council expects will cost £500,000 over its budget.

But elsewhere, the town hall is looking at a projected underspend of £3.7m in its ‘place’ books, which cover the physical environment and community in the borough.

This is due to additional income being generated, namely an extra £1.5m generated by hiking the fixed penalty notice charge by £30.

Havering’s total budget for the year is £292m, including the ‘worst-case-scenario’ contingency.

In the report, the town hall said it was “currently in a period of intense financial pressure as a result of long-standing government underfunding at a time of rapid demographic change and growth.”

Officers added: “With no substantial change to funding arrangements for 2025/26, while the population continues to grow, this unsatisfactory situation has persisted.”

In February, the council accepted a government bailout of up to £89m to prevent it collapsing into effective bankruptcy. It will be able to withdraw the money as and when it needs it, operating similarly to a line of credit.

The report says the risks will be “carefully monitored” throughout the coming year and are subject to change.

In a bid to save money last financial year, the council closed three libraries in the borough in February and cut back on cultural events, including paying for Christmas lights to be strung up in Romford town centre.

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