This week in Havering:

Council Faces Dire Financial Straits: Budget Gap Widens, Borrowing Soars

Havering Council's financial future looks increasingly precarious as the Cabinet met on Wednesday 18 February 2026 to confront a widening budget gap and the necessity of substantial borrowing. The proposed 2026/27 Council Budget and the 2026-2030 Medium Term Financial Strategy paint a stark picture of financial challenges, with the council forecasting a need for Exceptional Financial Support amounting to approximately £82.3 million by 2028/29.

The core of the problem lies in the council's unsustainable financial position, driven by years of underfunding and increasing demand for services, particularly in social care and housing. Even with proposed savings of £10 million for 2026/27 and a 4.99% Council Tax increase (including a 2% Adult Social Care Precept), the council faces a projected deficit that will require borrowing of around £77 million to £93 million per year. This reliance on borrowing, compounded by interest and repayment costs, is so significant that the council's financial strategy is now deemed non-compliant with the Prudential Code regarding affordability and sustainability.

The implications for residents are profound. While the council is legally bound to set a balanced budget, the methods employed – primarily increased borrowing – could severely limit its capacity to fund essential services in the future. The report highlights that the government's Fair Funding Review, while providing an additional £39 million in grant by 2028/29, falls far short of closing the council's structural deficit.

Councillor Christopher Wilkins, Cabinet Member for Finance, stated, The council's financial position was described as unsustainable, with a projected deficit that would require borrowing of around £77 million to £93 million per year from 2026/27 to 2028/29 to balance the budget. He further noted, The government's fair funding room has helped, but fails, falls, sorry, far short in the finances needed for us to balance the budget over three years. This is an unsustainable position for us, the council to be in, and whilst we have balanced the 2627 budget with EFS, future years remain very uncertain.

The Cabinet also reviewed comments from the Overview and Scrutiny Board, which included recommendations for exploring alternative modelling on street trading licence fees, reviewing wording in the Discretionary Fees and Charges section for a compassionate approach, and investigating opportunities for enhanced communications regarding Green Flag status. Cabinet members acknowledged these points, with officers tasked to provide further responses.

Details of the Cabinet meeting can be found here.

Investing in the Future: Capital Programme and Treasury Management Strategies

Alongside the critical budget discussions, the Cabinet also reviewed the Council's Five Year Capital Programme and Strategy Report for 2026/27 to 2030/31, and the Treasury Management Strategy Statement and Annual Investment Strategy for 2026/27. These reports outline the council's plans for capital expenditure and its approach to managing its financial investments and borrowing.

The proposed capital programme includes £391 million for 2026/27 and £1,050 million over the full five-year period. Significant investments are planned across various directorates, including substantial allocations for regeneration projects such as Mercury Land Holdings, Bridge Close, and Rainham & Beam Park. The Housing Revenue Account (HRA) capital programme alone amounts to £649.974 million over five years.

However, the financing of these projects relies heavily on borrowing, which, as noted in the budget discussions, is becoming increasingly unsustainable due to the impact of Exceptional Financial Support (EFS). The Capital Financing Requirement (CFR) is projected to increase substantially.

The Treasury Management Strategy Statement details the council's approach to managing its borrowing and investments, aiming to minimise interest costs while ensuring security and liquidity. The strategy acknowledges the macroeconomic outlook of falling interest rates but also highlights the non-compliance with the Prudential Code due to the exceptional financial support required.

These strategies, while outlining necessary investments in infrastructure and housing, are intrinsically linked to the council's overall financial health. The significant reliance on borrowing for both revenue and capital expenditure raises serious questions about the long-term viability of these plans without a fundamental shift in the council's financial position or increased central government support.

Details of the Cabinet meeting can be found here.

Upcoming Meetings

Here's a summary of upcoming meetings and their main topics:

• The Audit Committee will meet on Tuesday 24 February 2026. Link to meeting
• The Cabinet will meet on Tuesday 24 February 2026. Link to meeting
• The Strategic Planning Committee will meet on Thursday 26 February 2026. Link to meeting
• The Governance Committee will meet on Monday 02 March 2026. Link to meeting
• The Governance Committee will meet on Monday 02 March 2026. Link to meeting
• The Place Overview & Scrutiny Sub Committee will meet on Tuesday 03 March 2026. Link to meeting
• The Strategic Planning Committee will meet on Tuesday 03 March 2026. Link to meeting
• The Council will meet on Wednesday 04 March 2026. Link to meeting

This week in Havering:

Council Grapples with £73 Million Budget Gap: Council Tax Hike and Borrowing on the Horizon

Havering Council is facing a severe financial crisis, with a projected budget gap of £73 million for the 2026/27 financial year. Even after implementing a planned 4.99% Council Tax increase, the council will need to resort to significant borrowing to balance its books, raising serious concerns about its long-term financial health.

The Overview & Scrutiny Board meeting on Wednesday 4 February 2026 laid bare the council's precarious financial situation. Officers presented a Medium Term Financial Strategy (MTFS) that forecasts an annual deficit of £90 million for the next two years. This means the council will require exceptional financial support or a capitalization direction to balance its budget for the foreseeable future. The projected accumulated debt could reach approximately £300 million by 2028/29, with annual borrowing costs estimated at a staggering £28 million.

Councillor Patel voiced significant concerns about the sustainability of the MTFS beyond 2026/27, questioning the specific measures planned to close the projected £80-£83 million gap by 2028/29. Officers acknowledged the unsustainability due to insufficient funding and a structural deficit, emphasizing the urgent need for substantial cost reductions and potentially further council tax increases.

The real-world impact for residents is significant. While the council is legally obliged to set a balanced budget for 2026/27, this will be achieved through substantial borrowing. The sheer scale of this debt and its associated costs could severely limit the council's ability to fund essential services in the future. Havering Council is currently in ongoing discussions with the Ministry of Housing, Communities and Local Government (MHCLG) regarding its financial challenges.

Details of the Overview & Scrutiny Board meeting can be found here.

Safeguarding Vulnerable Residents and Investing in a Best Start in Life for Children

The Health & Wellbeing Board met on Wednesday 4 February 2026 to discuss critical initiatives focused on protecting vulnerable residents and ensuring a strong foundation for Havering's youngest citizens. Key discussions centred on the Havering Safeguarding Partnership's annual report and the ambitious Best Start in Life Plan.

Safeguarding Partnerships: Protecting the Vulnerable

The board reviewed the Havering Safeguarding Partnership's (HSP) annual report for 2024-25. This report detailed the vital work undertaken by both the Havering Safeguarding Adults Board (HSAB) and the Havering Safeguarding Children's Partnership (HSCP). Key priorities for 2024-27 were discussed, with a strong emphasis on:

• Transitional Safeguarding: Ensuring individuals with disabilities and special educational needs receive consistent support as they transition into adulthood.
• Equality, Diversity, and Inclusion: Embedding these principles into all safeguarding practices to ensure fairness for everyone.
• Neglect and Self-Neglect: Addressing these complex and challenging issues with sensitivity and effectiveness.
• Mental Health and Suicide Prevention: A critical area of focus, recognising the profound impact on individuals and communities.
• Child Sexual Abuse and Exploitation: Continuing robust efforts to combat these serious harms.

The report highlighted an increase in child protection planning related to child sexual abuse, which was attributed to focused work and enhanced training initiatives. For adults, improvements were noted in the process of converting safeguarding concerns into formal enquiries, ensuring timely action. The partnership's commitment to multi-agency training and awareness campaigns, such as the Talk Pants initiative, was also acknowledged. However, the report also identified potential implications and risks, including changes in agency structures, recruitment challenges, and ongoing financial pressures, underscoring the critical need for sustained vigilance and adequate resource allocation.

Best Start in Life Plan: Building a Brighter Future for Our Children

A significant portion of the meeting was dedicated to the Best Start in Life Plan, a comprehensive strategy designed to provide every child in Havering with the best possible start in life. This plan aligns with national strategies and places a crucial focus on the first 1,001 days of a child's life. The overarching vision is to create integrated, accessible, and high-quality early years services, built upon key pillars:

• Family Hubs: Establishing central points where families can easily access a range of support services.
• Early Identification and Intervention: Proactively identifying and supporting families who may be at risk.
• Workforce Development: Ensuring a skilled and dedicated workforce is available to deliver services.
• Reducing Inequalities: Actively working to address disparities in early years outcomes.

The plan acknowledges Havering's specific demographic profile, including population growth and increasing diversity, and aims to significantly improve educational outcomes. A key target is to increase the number of children achieving a Good Level of Development by 2028. The strategy's priority areas are clearly defined as: Better Support for Families, More Accessible Early Education & Childcare, and Improving Quality in Early Years. The report detailed potential risks, including challenges in integrating different systems and ongoing financial pressures, highlighting the absolute necessity for robust partnerships and innovative solutions.

The discussions at this board are fundamental to ensuring the safety and well-being of Havering's most vulnerable residents and for laying the groundwork for a more promising future for our children.

Details of the Health & Wellbeing Board meeting can be found here.

Other Matters

Contracts Procedure Rules Reviewed Amidst Procurement Act Changes

The Overview & Scrutiny Board reviewed the council's Contracts Procedure Rules (CPRs) on Wednesday 4 February 2026. The discussion was significantly influenced by the substantial changes introduced by the Procurement Act 2023, which currently requires the council to navigate three different sets of procurement legislation simultaneously.

The council's contracts register accounts for approximately £227 million, excluding social care contracts. The top three contracts by annual spend are waste property services, Adecco for contingent labour, and Marlborough Highways for highways maintenance.

Concerns were raised about the council's financial sustainability, with a projected budget gap of £72.7 million for 2026/27. This necessitates substantial borrowing and a proposed 4.99% Council Tax increase. The board also discussed the implications of budget savings on officer time and service levels, with officers acknowledging that no area is currently over-resourced.

The council is actively working towards centralising contract management, training, and methodology to ensure consistency and early risk identification across high-value contracts. Interim controls are currently in place under the Procurement Act 2023.

Details of the Overview & Scrutiny Board meeting can be found here.

Upcoming Meetings

Here's a summary of upcoming meetings and their main topics:

• The Appointments Sub Committee will meet on Tuesday 10 February 2026. Link to meeting
• The Appointments Sub Committee will meet on Tuesday 10 February 2026. Link to meeting
• The Planning Committee will meet on Thursday 12 February 2026. Link to meeting
• The Governance Committee will meet on Monday 16 February 2026. Link to meeting
• The Cabinet will meet on Wednesday 18 February 2026. Link to meeting

This week in Havering:

Council Faces Staggering £73 Million Budget Gap: Council Tax Hike and Borrowing Loom

Havering Council is staring down a monumental financial challenge, with a projected budget gap of £73 million for the 2026/27 financial year. This alarming figure, even after accounting for planned savings and a proposed 4.99% Council Tax increase, necessitates significant borrowing and raises serious questions about the council's long-term financial sustainability.

The Overview & Scrutiny Board meeting on Wednesday 4 February 2026 revealed the stark reality of the council's financial position. Officers presented a Medium Term Financial Strategy (MTFS) forecasting a £90 million annual deficit for the subsequent two years, meaning the council will require exceptional financial support or a capitalization direction to balance its budget for the foreseeable future. This could lead to accumulated debt of approximately £300 million by 2028/29, with annual borrowing costs estimated at £28 million.

Councillor Patel voiced concerns about the sustainability of the MTFS beyond 2026/27, questioning the specific measures to close the projected £80-£83 million gap by 2028/29. Officers confirmed the unsustainability due to insufficient funding and a structural deficit, highlighting the need for significant cost reductions and potential further council tax increases.

The implications for residents are profound. While the council is committed to setting a legally balanced budget for 2026/27, this will be achieved through substantial borrowing. The sheer scale of the debt and the associated borrowing costs could impact the council's ability to fund essential services in the future. The council is in ongoing discussions with the Ministry of Housing, Communities and Local Government (MHCLG) about its financial challenges.

Details of the Overview & Scrutiny Board meeting can be found here.

Safeguarding Children and Adults, and a Best Start in Life for Havering's Youngest Residents

The Health & Wellbeing Board met on Wednesday 4 February 2026 to discuss critical initiatives aimed at protecting vulnerable residents and ensuring a strong foundation for the borough's children. Key discussions included the Havering Safeguarding Partnership's annual report and the ambitious Best Start in Life Plan.

Safeguarding Partnerships: Protecting the Vulnerable

The board reviewed the Havering Safeguarding Partnership's (HSP) annual report for 2024-25. This report detailed the work of both the Havering Safeguarding Adults Board (HSAB) and the Havering Safeguarding Children's Partnership (HSCP). Key priorities for 2024-27 were discussed, focusing on areas such as:

• Transitional Safeguarding: Supporting individuals with disabilities and special educational needs as they transition into adulthood.
• Equality, Diversity, and Inclusion: Ensuring safeguarding practices are equitable for all.
• Neglect and Self-Neglect: Addressing these complex issues.
• Mental Health and Suicide Prevention: A critical area of focus.
• Child Sexual Abuse and Exploitation: Ongoing efforts to combat these harms.

The report highlighted an increase in child protection planning around child sexual abuse, attributed to focused work and training. For adults, improvements were noted in converting safeguarding concerns into formal enquiries. The partnership's efforts in multi-agency training and awareness campaigns, such as Talk Pants, were also acknowledged. However, implications and risks were identified, including agency changes, recruitment challenges, and financial pressures, underscoring the need for continued vigilance and resource allocation.

Best Start in Life Plan: Investing in Our Children's Future

A significant portion of the meeting was dedicated to the Best Start in Life Plan, a strategy designed to provide every child in Havering with the best possible start. This plan aligns with national strategies and focuses on the crucial first 1,001 days of a child's life. The vision is for integrated, accessible, and high-quality early years services, with key pillars including:

• Family Hubs: Creating central points for families to access support.
• Early Identification and Intervention: Targeting families at risk.
• Workforce Development: Ensuring skilled professionals are available.
• Reducing Inequalities: Addressing disparities in early years outcomes.

The plan acknowledges Havering's demographic profile, including population growth and diversity, and aims to improve educational outcomes, particularly the number of children achieving a Good Level of Development by 2028. The strategy's priority areas are: Better Support for Families, More Accessible Early Education & Childcare, and Improving Quality in Early Years. The report detailed potential risks, including system integration challenges and financial pressures, highlighting the need for robust partnerships and innovative solutions.

The discussions at this board are vital for ensuring the safety and well-being of Havering's most vulnerable residents and for laying the groundwork for a brighter future for our children.

Details of the Health & Wellbeing Board meeting can be found here.

Other Matters

Contracts Procedure Rules Reviewed Amidst Procurement Act Changes

The Overview & Scrutiny Board reviewed the council's Contracts Procedure Rules (CPRs) on Wednesday 4 February 2026. The discussion was heavily influenced by the significant changes brought about by the Procurement Act 2023, which currently requires the council to navigate three different sets of procurement legislation.

The council's contracts register accounts for approximately £227 million, with exclusions for social care. The top three contracts by annual spend are waste property services, Adecco for contingent labour, and Marlborough Highways for highways maintenance.

Concerns were raised about the council's financial sustainability, with a projected budget gap of £72.7 million for 2026/27. This necessitates substantial borrowing and a proposed 4.99% Council Tax increase. The board also discussed the implications of budget savings on officer time and service levels, with officers acknowledging that no area is over-resourced.

The council is working towards centralising contract management, training, and methodology to ensure consistency and early risk identification across high-value contracts. Interim controls are in place under the Procurement Act 2023.

Details of the Overview & Scrutiny Board meeting can be found here.

Upcoming Meetings

Here's a summary of upcoming meetings and their main topics:

• The Appointments Sub Committee will meet on Tuesday 10 February 2026. Link to meeting
• The Appointments Sub Committee will meet on Tuesday 10 February 2026. Link to meeting
• The Planning Committee will meet on Thursday 12 February 2026. Link to meeting
• The Governance Committee will meet on Monday 16 February 2026. Link to meeting
• The Cabinet will meet on Wednesday 18 February 2026. Link to meeting

This week in Havering:

Mercury Land Holdings Business Plan Under Scrutiny: Affordable Housing and Financial Viability at the Forefront

The Place Overview & Scrutiny Sub-Committee met on Tuesday 27 January 2026 to scrutinise the business plan for Mercury Land Holdings (MLH), the council's wholly-owned development company. A central theme of the discussion was the company's role in delivering affordable housing and its financial sustainability, particularly in light of a recent motion at Full Council aiming to shift MLH's focus towards social housing.

Officers presented a detailed analysis, concluding that a direct shift to social housing provision by MLH would be financially ruinous and prejudicial to council finances. This is primarily because MLH is not a registered provider of social housing and would be unable to access grant funding, making such developments significantly less viable. Furthermore, the current business plan is structured around Private Rented Sector (PRS) housing, which generates rental income that flows back into the council's budget.

The Sub-Committee heard that MLH has already delivered a significant amount of affordable housing, with 117 units generated from its current pipeline. These include 23 three-bedroom and 33 four-bedroom homes, addressing a known need for family-sized accommodation in the borough.

A revised motion, which the officers deemed deliverable, focuses on increasing affordable housing delivery once MLH reaches its break-even point. This revised approach aims to balance the company's commercial objectives with the council's commitment to providing more affordable homes. The Sub-Committee also discussed the potential for MLH to contribute to reducing the demand for temporary accommodation, with a recommendation that a dashboard be created to track this impact.

Key Takeaways:

• Social Housing Shift Deemed Unviable: Officers advised that a direct move to social housing by MLH would be financially detrimental.
• Affordable Housing Delivery: MLH has already provided 117 affordable homes, including much-needed family-sized properties.
• Revised Motion Focus: The updated approach prioritises increasing affordable housing once MLH achieves financial break-even.
• Impact on Temporary Accommodation: A new dashboard is recommended to measure MLH's contribution to reducing temporary accommodation costs.
• Social Value Commitment: A recommendation was made for MLH to explicitly state its commitment to Havering's Social Value Strategy in its business plan.

The Sub-Committee also discussed the broader regeneration plans for Bridge Close and the 12 Estates project, with detailed updates on progress, financial projections, and identified risks. For Bridge Close, the focus remains on delivering infrastructure alongside housing, including a new primary school and health facilities. The 12 Estates project continues to progress across several sites, with a focus on securing planning permissions and concluding land assembly.

Details of the Place Overview & Scrutiny Sub Committee meeting can be found here.

Cabinet Reviews Regeneration Plans and Approves Key Business Cases

The Cabinet met on Wednesday 28 January 2026 to consider a series of crucial business plans for the borough's regeneration projects and housing initiatives. The meeting saw the approval of several key documents, including the Mercury Land Holdings (MLH) Business Plan and updates on major regeneration schemes like Bridge Close and the 12 Estates project.

The Cabinet also received comments from the Place Overview & Scrutiny Sub-Committee regarding the MLH business plan. These comments included a request for MLH to commit to not selling units directly to other local authorities, a desire for clearer metrics on how MLH contributes to reducing temporary accommodation costs, and a recommendation for MLH to explicitly state its commitment to the council's Social Value Strategy. The Cabinet noted these comments and the Sub-Committee's recommendation for future business plans to be presented for scrutiny at an earlier stage.

Key Decisions:

• Mercury Land Holdings (MLH) Business Plan Approved: The Cabinet approved the MLH Business Plan, acknowledging the company's role in delivering PRS housing and its ongoing contribution to affordable housing. Recommendations were made to create a benefits dashboard to track MLH's impact on temporary accommodation and the general fund, and for MLH to explicitly incorporate social value objectives into its business plan.
• Regeneration Project Business Plans Approved: The Cabinet also approved the business plans for Bridge Close, the Havering Wates Regeneration Joint Venture, and the Rainham and Beam Park project. These plans outline the strategic direction and financial frameworks for significant development and regeneration efforts across the borough.
• Housing Revenue Account (HRA) Business Plan and Capital Programme Noted: The Cabinet received updates on the HRA Business Plan and Capital Programme, which are critical for the council's housing stock and future development pipeline.

The discussions highlighted the council's commitment to regeneration and housing delivery, while also acknowledging the importance of community engagement and robust financial oversight. The approval of these business plans signals a continued focus on developing Havering's infrastructure and housing offer.

Details of the Cabinet meeting can be found here.

Upcoming Meetings

Here's a summary of upcoming meetings and their main topics:

• The Governance Committee will meet on Wednesday 04 February 2026. Link to meeting
• The Health & Wellbeing Board will meet on Wednesday 04 February 2026. Link to meeting
• The Overview & Scrutiny Board will meet on Wednesday 04 February 2026. Link to meeting
• The Appointments Sub Committee will meet on Tuesday 10 February 2026. Link to meeting
• The Appointments Sub Committee will meet on Tuesday 10 February 2026. Link to meeting
• The Planning Committee will meet on Thursday 12 February 2026. Link to meeting