As we head into a new year, it’s important to consider the challenges we have ahead of us. Before Christmas, the Government announced its settlement figures for local authorities – this is the money provided by the Government for Councils to run statutory services which are those that we must provide by law. And once again, it appears Havering’s plight has been ignored.

Despite our well-documented financial crisis stemming from chronic underfunding and the huge cost of social care and homelessness, Havering has lost out. The Government set aside additional grant money to councils who are most in need, but this is still being based on the out of date government funding formula, using data well over a decade old.

These grants are focussed on councils with high deprivation and lower Council Tax payments, rather than looking at the challenges that each Council faces. Because of underfunding and raising costs, we have had no choice but to raise Council Tax by the maximum level each year to try to counteract this underfunding.

We have tried to do the right thing year-on-year by making cuts and becoming more efficient, and independent analysis has shown that we are one of the most productive Councils in the UK and have one of the lowest unit costs in all of outer London, but still we get penalised and we are now at the point where we have very little to cut if at all. As a result, our residents are having to pay higher Council Tax to keep much needed services going.

Thank you to everyone who took part in our recent budget consultation. Your feedback will be used to guide us with the difficult choices we will need to make to present a balanced budget for 2025/26 – which we must do by law. But we still need your help. The funding system needs to change, and we will continue to lobby the Government for urgent action. Please take some time to sign our petition online demanding a fairer deal from Government, and if you can, please write to your MP and ask them to continue fighting for their constituents. As always, I will keep you updated on our budget issues, and any actions we take, as they happen.

Best wishes,

Ray

Cllr Ray Morgon

Leader, Havering Council