Havering Budget Consultation 2025-26

Closed 3 Jan 2025

Opened 22 Nov 2024

Contact

communications@havering.gov.uk

Feedback updated 3 Apr 2025

We asked

Havering Council launched a consultation on our Budget 25-26 draft proposals, from 22 November 2024 to 3 January 2025, which set out how the Council propose to save money whilst still providing vital public services.  We asked for feedback on how these proposals would affect Havering’s residents.  We also held a public event on Wednesday 18 December 2024 which was attended by 14 people.

 

At the time the consultation was published, we were predicting a budget gap of around £74 million and we explained that Havering is in this position as the funding we receive from government no longer meets rising costs and the borough’s changing population and that, as in recent years, we knew we would have to make some difficult decisions during the setting of the 25-26 budget to ensure money is directed to where it is needed most.

We also explained how we continue to lobby the government for a fairer funding deal which accurately reflects the changing population and needs in Havering and asked residents to help us by signing our petition and writing to their local MP. 

You said

608 responses were received to the consultation, which included 25 paper copies.

 

  • The three most important issues that respondents felt Havering is likely to face in the next year by weighted rank are: Crime and Community Safety (14.9%), The Economy and Cost of Living (14.4%) and Increasing Population Levels (14.1%).

 

  • The three most important issues that respondents are personally most concerned about are: Cleanliness of Street and Local Area (17%), Anti-Social Behaviour in My Community (14%) and Paying Bills/Rent/Mortgage (10%).

Residents were asked if they would support an increase in Council Tax.  We did not include any particular assumptions on a Council Tax increase but provided an illustration of how a 5% increase in Council Tax would mean an increase of £1.66 per week on an average Band D property in the borough:

 

    • 40% supported an increase of up to 5%
    • 15.5% supported an increase of 5% or above
    • 41% did not support an increase

Respondents were asked if they would support a Council Tax premium for second homes which have been empty and furnished for more than twelve months in the same way as empty and unfurnished properties:

 

  • 80% supported charging a premium
  • 13% did not support charging a premium

 

We asked for feedback on our proposals which we grouped into themes:

Council Tax Increases:  Many comments expressed concerns about the affordability of council tax increases, especially for pensioners and low-income households. There was general sentiment that any increase above 5% would be unaffordable to many residents.

Empty and Second homes:  There were mixed opinions on charging a premium for empty and second homes. Some believed that second homes are a luxury and should be taxed if left empty, while others want exceptions in cases like long-term hospital stays, care homes or probate delays.

Council Efficiency and Spending:  Some comments highlighted the need for the council to improve efficiency and reduce wasteful spending. Suggestions included better management of council resources, reducing high salaries, and cutting down on unnecessary projects.

Social Care and Essential Services:  There was an emphasis on the importance of funding essential services such as social care, policing and education. Some residents were willing to support a council tax increase if it ensured the maintenance or improvement of these services.

Fairness and Equity: The theme of fairness was prevalent, with many comments suggesting that council tax should be based on the ability to pay.

Government Funding: A recurring theme was the need for increased government funding to support local councils to alleviate the burden on local taxpayers

We did

Havering's Cabinet met on 26 February 2025 and agreed proposals for the Council's 2025-26 budget.

As a direct result of feedback:

 

  • Council tax will be increased by 4.99% from 1 April 2025
  • The Council will continue to invest in safety with a new CCTV system coming online and another year of funding for the section 92 police officers.
  • Parks will continue to be maintained and the Council will carry on building homes for Havering residents through a number of different regeneration schemes.
  • The Council will continue to invest in our roads, support local businesses through a new campaign, and ensure help remains for our most vulnerable through the cost of living challenge. 

Please see the full Public Document Pack Here which includes the 2025-26 Council Budget Setting Report.

Overview

Havering Council provides a wide range of services to our communities, spending around £200 million every year. Some of these services, called statutory services, are ones that we must provide by law. Others, called discretionary services, are ones we choose to provide. We know many of our services are highly valued by our residents but, as in recent years, we know we will have to make some difficult decisions during the setting of next year’s budget to ensure money is directed to where it is needed most.

Next year the authority is predicting a budget gap of around £74 million. This leaves the Council with few options to address the deficit:

  • Another Capitalisation Direction (Government loan)
  • Significantly increasing Council Tax beyond the Government’s proposals (this would require a referendum)
  • Section 114 (effectively declaring the Council bankrupt with the possibility of Government Commissioners being sent in to run the Council which in itself would incur significant costs)
  • Urgent intervention from the government (extra funding / funding formula review to reflect current population change and need)

Havering is in this position as the funding we receive from government no longer meets the rising costs and the borough’s changing population.  

In 2010, the Council received £70 million of Revenue Support Grant which is now £2 million today. The Revenue Support Grant coupled with other funding such as business rates makes up the Council’s core grant known as the Settlement Funding Assessment.  This has been reduced from £100 million to £40 million over the same time period. Despite the borough’s fast changing population, Havering’s core grant remains one of the lowest in London.

We have the second oldest population in London, together with the fourth fastest growing young population in the country. This has resulted in huge pressure and demand on social care for both adults and children meaning that over 70% of the Council’s budget is spent on delivering social care, which we legally must provide – and that figure is steadily rising.   In addition to this there has been a sharp increase in homelessness. This in turn has created an unprecedented pressure on both housing demand and costs for temporary accommodation – further adding to our budget pressures.

We continue to lobby the government for a fairer funding deal which accurately reflects the changing population and needs in Havering. Until there is a full review of the local government funding formula – we are left with no choice but to propose an increase in Council Tax and consider difficult savings proposals. To help change this you can help us lobby the government by signing our petition and writing to your local MP. 

This consultation comes as the Council and our communities are feeling the effects of additional social and economic pressures made worse by the cost of living challenge and housing crisis.  

We have done all that we can to stop this from happening and independent analysis has shown Havering to be one of the most cost efficient Councils in the country. Over the past 10 years, we have made around £160 million in savings and continue to work on finding further cost savings and income generation opportunities. But because we are already a low-cost Council, future savings are even more difficult to find. This leaves the Council with very few options to be able to set a balanced budget – which we must do by law.

Why your views matter

As we move towards setting the budget for next year, we are very keen to understand the views of our residents and key stakeholders. We are launching this budget consultation to give you the chance to tell us your views on how our proposals might impact you, the people you know and your communities.

We invite you to join us at this scheduled event: 

Events

  • Budget Consultation 2025-26 Event

    From 18 Dec 2024 at 19:00 to 18 Dec 2024 at 21:00

    Town Hall
    Main Road
    Romford
    RM1 3BB

    Please email engagement@havering.gov.uk to book your place.

    Add to my Calendar (.ics)

Audiences

  • Residents
  • Businesses
  • Communities

Interests

  • Residents
  • Communities
  • Businesses
  • Budget
  • Council