Havering Council calls for more funding to prevent cuts

The council says it is facing the prospect of having to make swingeing spending cuts next year to plug a projected £70 million black hole in its finances over the next four years.

Current proposals outline children’s services and adult social care as potential areas for cuts, but these decisions are yet to be finalised as the council is currently running a public consultation on its budget for the next financial year.

READ MORE: Council tax in Havering could rise to more than £2,000

The petition calls for the Government to agree to “a new funding formula” that would increase the amount of direct funding Havering receives from government. This would allow the council to avoid making some of the projected cuts.

Currently, Havering Council derives 80% of its budget from council tax. Its funding from government has been slashed from £70 million in 2010 to just £1.5 million today.

Havering Council leader Roy Morgon urged the government to review its current [funding] formula for local authorities (Image: Havering Council)

Councillor Ray Morgon, Leader of Havering Council, said: “We’re calling for the Government to target its money to reflect the needs of Havering’s population and recognise the borough’s current and changing demographic.

"We have a growing older population that is much larger than most London boroughs, and also one of the fastest growing younger populations. Together this creates enormous additional demand and pressures on our social care services and budget.

“Inner London boroughs receive more Government grant due to perceived higher levels of deprivation and more income from business rates. If the Government does not change how it allocates grants, it will continue to see some boroughs put money straight in to their bank accounts while others, like Havering, have to do without.

"I would also urge the Government to allow us to keep more of the business rates collected locally so that that money can be used to support Havering residents.

“Therefore, the Government needs to review its current formula and fund us as set against current challenges.”

A spokesperson for the Department of Levelling Up, Housing and Communities said: “We have made available £54.1 billion this year for councils across England, an additional £3.7 billion compared to last year. Havering Council has more than £198 million available for this financial year.

“Councils are best placed to plan and manage their budgets, in line with the priorities and needs of their local residents.”