Havering Council Forecasts £54.2m Use Of Exceptional Financial Support
Havering Council is forecasting that it will need to use £54.2 million of Exceptional Financial Support during the current financial year.
The figure was discussed as Cabinet considered the authority’s Quarter One revenue and capital monitoring report on Wednesday 16 September.
Cabinet member for finance Councillor Sue Benjamins said the council’s forecast had improved by £11.7 million when compared with its previous worst-case projection.
However, she said the authority still expected to draw on Exceptional Financial Support this year, although by considerably less than had originally been envisaged.
Exceptional Financial Support allows councils facing serious financial difficulties to use capital resources, including borrowing or asset-sale proceeds, to meet day-to-day expenditure, subject to government approval.
The council did not draw on the support available to it during the previous financial year.
“This year we are going to have to, but much less than was originally envisaged, at £54.2 million at present estimates,” Councillor Benjamins told the meeting.
Measures being used to control spending include panels examining whether proposed appointments and vacant posts need to be filled.
Adult social care, children’s services and support for pupils with special educational needs remain among the council’s most significant financial pressures because demand cannot be controlled in the same way as discretionary spending.
Cabinet was told that the Dedicated Schools Grant deficit continued to present a challenge, although the Government was expected to cover 90 per cent of the relevant additional pressure.
There is also significant capital underspending. Some of this relates to delays involving new local school provision. The council expects future savings once more children can attend suitable schools within Havering instead of travelling long distances by taxi or coach.
The Leader of the Council said Havering was working with other authorities to lobby the Government over the local government funding formula and the financial pressures councils continue to face.
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