Special Report: Havering Residents Are Paying The Price Of Poor Central Funding Compared Inner London. Why Are We Left Behind?

Residents across the borough are frequently complaining about the poor state of Havering — dirtier streets, fly-tipping and a general feeling of neglect. The current council has stated that they have made so many cuts that they are now “down to the bone,” and this is starting to show across the borough.

Council Leader Ray Morgon has repeatedly blamed the lack of central government funding for the strain, arguing that Havering has been “chronically underfunded for years.”
The Havering Daily has reviewed the figures going in and the numbers going out and the results paint a stark picture of the financial challenges facing the borough.

Havering has long warned that it faces one of the toughest financial positions in London and new figures show exactly where the pressure is building. Social services for both adults and children, together with temporary housing, are now consuming the largest share of the borough’s spending.

Recent data reveals that the council’s People Services budget, which covers both adult and children’s social care was set at around £155 million, but actual spending is projected to hit £170 million, leaving a shortfall of more than £15 million. The rise is driven largely by an increase in children being taken into care and a growing number of disabled children needing support.

It is always the most vulnerable who pay the price. Children with special educational needs have the same right to a good quality of life as every other child, yet many face barriers that should not exist. This is not just a Havering problem — it is a national crisis that urgently needs to be addressed. Funding for disabled children must be prioritised now.

Havering has already seen cuts to transport services for special educational needs and disability (SEND) pupils, and parents feel their children are being penalised. These children do not have voices loud enough to be heard, leaving their parents on the frontline daily, fighting for their children’s rights. It’s time for central government to step up and provide proper, fair funding to every borough to ensure all children receive the support they deserve.

Adult social care alone accounted for £105.5 million in expenditure last year. This includes costs of care packages, residential support, and community-based services for vulnerable adults and older residents.

Housing continues to add to the financial strain. The borough spent over £13.7 million on temporary accommodation for homeless families in the past year — £7.4 million of which was paid directly from council funds. The remaining costs were covered by housing benefits and government grants, but the overall bill continues to rise sharply as demand for temporary housing increases.

A council report earlier this year warned of an overspend of £6.1 million linked to temporary accommodation, and early forecasts for 2025 suggest a further £1.8 million shortfall in housing and £2.3 million in adult social care.

Local leaders have repeatedly urged central government to reform how outer London boroughs are funded. Havering, with one of the fastest-growing populations of children and older people, says it is being left to deliver costly statutory services with inadequate government support.

Councillor Ray Morgon, Leader of Havering Council, has previously said:
“You, the council taxpayer, are footing the bill when the Government should be covering the costs of statutory services like social care and temporary accommodation.”

Despite new consultations on a potential funding review for local authorities, it is still unclear how much additional support Havering will receive or when. Until then, the council is expected to continue lobbying Westminster and exploring further efficiency measures to balance the books.

Outer London boroughs are suffering and crumbling due to insufficient funding, Havering is borrowing despite being as frugal as it can. Our council tax is going up and up and our services are going down. Funding is vital for our borough and we are not getting it. It’s as simple as that. Inner London boroughs receive more, boroughs like Havering lose out.

For example, Havering currently receives around £294 per person in Settlement Funding Allocation (SFA), while neighbouring boroughs and many inner London boroughs receive £500-£700 per person or more. In the 2016/17 figures, Newham received over £530 per head, Waltham Forest over £400 per head, Barking & Dagenham over £450, but Havering was on just £294.

Which ever way we examine, Havering is at the bottom of the pile when it comes to funding and the residents are paying the price.

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