Plans to make savings to plug a £19 million projected council overspend for this financial year were reviewed at yesterday’s (September 28) Havering cabinet meeting.
In a report published ahead of the meeting, an update was provided on the financial status of Havering Council.
Describing the position as “acute”, the report detailed how a £19m service overspend is predicted for 2022/23, with a £70m gap between funding and forecast levels expected over the next four years.
A £20m overspend was recorded for 2021/22, partially mitigated by £8.1m in government support to tackle Covid.
The report says the cost-of-living crisis and rising interest rates are among pressures affecting the council’s finances.
Looking forward, government "underfunding" is listed as a key issue for the council over the next few years, with potential savings mooted including reducing support for the voluntary sector.
At Wednesday’s meeting, Cllr Chris Wilkins, cabinet member for finance and transformation, spoke about a reduction in central government funding from £70m in 2010 to £1.5m in 2022.
He also said 70 per cent of Havering's net revenue budget funds statutory adult and children’s social care, the demand for which he described as “astronomical”.
“What we’ve had is autonomy to deal with social care in the community without finances,” he said.
However, while warning that the position looks precarious unless action is taken, Cllr Wilkins added: “I’m confident in this administration, and I’m confident officers will help us mitigate this situation.”
The need for cuts in lieu of further government support was also raised by other members, with Cllr Graham Williamson, cabinet member for development and regeneration, saying: “I think we can survive, but the public needs to understand that there may be cuts that cut to the bone. And it’s not that we want to do it.”
Cllr Martin Goode, leader of the East Havering Residents’ Group (EHRG), acknowledged the situation but said: “The question is, where’s this money going to come from to fund [everything]?”
Cabinet agreed to the report's recommendations, noting the council’s position and agreeing to a public consultation process to begin next month.
During the meeting, the cabinet also reviewed changes made to the all-autism strategy, and approved the removal of the one-hour free on-street parking period introduced during the pandemic.
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