Havering Council Set To Approve Tax Hike of 4.99%

‘The latest figures show that 300 households now approach the council each month for help with housing, up from 200 in 2021.‘

Residents in Havering will be paying almost 5% more in council tax from April. Havering Council is set to approve a tax hike of 4.99% for 2026/27, according to a recently published report writes Sebastian Mann.

Residents in an average band-D property will now pay £2,424 each year, up from £2,313 – an increase of £111, or £9.25 a month.

A 4.99% increase is the highest a local authority can go without requiring a public referendum.

A similar hike was brought in last April, raising the annual council tax for band-D homes from £2,207.

Financial pressure is only mounting on Havering Council as it considers its budget for the coming year, due to be agreed in March.

It is due to enter 2026/27 with a budget deficit of £72.7million. Last year, the council was saved from effective bankruptcy – which would mean the council handing the reins over to stringent government-appointed commissioners – by a £88m bailout from Westminster.

As is the case for many authorities, the biggest strains on the council’s coffers are the demand for housing and social care for children and adults.

The latest figures show that 300 households now approach the council each month for help with housing, up from 200 in 2021.

In tandem, the council now spends more than £8million on nightly lets and hotels to support at-risk residents. This is despite the council’s efforts in finding 150 new homes for families.

The pressures on children’s services stem from Havering’s rapidly growing population. It increased by 10.4% between 2011 and 2021 – ahead of the 7.7% London average – while the 6% rise in the children population is the largest in outer London, and the fourth largest in the country.

Social workers in Havering struggle with their caseloads, according to an Ofsted report, and more and more children need the council to pay for their transport to school. There has also been a double-digit rise in the number of education, health and care plans which outline what extra help a pupil needs at school.

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