Havering Council Leader Calls For Fairer Funding.

Havering’s Leader of the Council-Councillor Ray Morgon today writes his column in the Havering Daily.

Councillor Ray Morgon has highlighted the ongoing financial pressures facing the borough, citing years of underfunding and increasing demand for essential services such as children’s and adults’ social care and temporary accommodation.

Cllr Morgon explained that these pressures have pushed the Council’s finances beyond what government funding and local income can support, forcing the authority to apply for a government loan to bridge the gap.

He said that there is some positive news on the horizon, as the Government has launched a consultation on proposed changes to the way councils are funded. These changes could mean additional funding for Havering, although the final settlement amount is not yet known.

Cllr Morgon said:
“The proposals look as though we should receive additional funding, but until we receive our settlement notice we won’t know how much. It may not be enough to cover core services, let alone pay back the loan.”

While many local authorities support the proposed changes, not all London boroughs are in full agreement. The new formula could see inner London boroughs lose funding and potentially be forced to increase council tax — something many of them have not had to do for years.

Cllr Morgon continued:
“This is in contrast to Havering, where we’ve had to increase council tax at the maximum rate every year because of years of underfunding, which I think is unfair. Residents are footing the bill when the Government should be covering the costs of statutory services like social care and temporary accommodation.”

He also noted that even if inner London boroughs were to raise their council tax next year, it would still not match the levels seen in many outer London boroughs like Havering.

Population changes have also added to local pressures. With more families moving from inner London to Havering, the borough has had to expand its school capacity.
“We now receive more than 50% of the Government’s capital grant in London for building school places,” Cllr Morgon said. “But we don’t get enough per pupil to cover running costs, so in fact we lose out.”

Despite the potential for a better funding settlement over the next three years, Cllr Morgon warned that it will not be enough to make up for years of underfunding or cover the cost of the government loan and its interest.

He concluded:
“We will continue to lobby the Government. They need to do more — improve our repayment terms or support councils like us who are in debt due to the cost of delivering statutory services such as social care and education. I encourage residents to support our petition for better Government funding, which we will deliver to the heart of Government later this year.”

Stay up to date with all of our latest updates and content by following us on our social media accounts!

We have created community pages where we will share our up-to-date stories happening in the area. Add the area closest to where you live.