Havering Council have proposed budget cuts
Last month, the Council revealed that independent analysis showed they could effectively be bankrupt in six months to a year’s time due to year-on-year reductions in Government funding, a massive increase in costs for adult and children’s social care, as well as increased numbers of homeless residents.
This has resulted in difficulties in balancing the budget for 2024/25. The Council are also going to be millions overspent in the current financial year.
Leader of the Council, Councillor Ray Morgan said: “Despite independent analysis showing that we are a low-cost Council, costs are much higher than our resources and as a result, we could potentially issue something known as a section 114 notice in six months to a year’s time, effectively stating that we are bankrupt.
“This is not because we are a badly run council or have made any unsound decisions, but because the services that we have to provide by law are overwhelming the resources that we have available.”
The Council have published papers for this weeks Cabinet meeting which sets out increased parking charges, reviewing libraries and childrens centres and cutting Christmas activities including lights and trees from April next year, plus other savings options. Currently the Council has a budget gap of £31.2 million and with all the above proposed changes will save around £13.2 million. This however, will still leave an £18 million gap in the budget before council tax is taken into consideration.
Cllr Ray Morgon said: “We are doing all we can to make further savings, but after around £160 million in savings over the past decade or more, the easy choices have gone.
“This is not where we want to be and you can see this puts us in a difficult position. We continue to lobby the Government and are having weekly meetings with officials to try and see if they can provide us with further help. We have also recently met Lee Rowley MP, the Local Government Minister. As yet, other than offering us a loan, there has been little help.
“What we are also pushing for is for the Government to review how it funds local government. We have been stuck with an out-of-date funding formula that does not reflect the changes in our population or needs. For example, we have the fourth fastest growth in 0-14 year olds in the UK as well as the second oldest population in London.
A consultation on the budget will launch this week so residents are being encouraged to share their views. Public meetings will also be held for residents to ask questions. Details will be published on both when the consultation starts.
