The Cabinet of Havering Council met on Wednesday 8 July 2026, agreeing to enter into a Section 75 agreement with NHS North East London ICB to govern the delivery of the Better Care Fund for 2026-2027. The Cabinet also reviewed the Council's Revenue and Capital Outturn Report for 2025/26, noting the revenue position and approving the capital outturn.

Approval to enter into a s75 Agreement with the NHS North East London ICB to govern the delivery of the Better Care Fund 2026-2027

The Cabinet agreed to enter into a Section 75 agreement with NHS North East London Integrated Care Board (ICB) to govern the delivery of the Better Care Fund (BCF) for the period 2026/2027. This agreement provides the legal framework for the council and the NHS to jointly commission and fund health and social care services for residents through the BCF. The fund totals £40.9 million for 2026-2027, including contributions for the Disabled Facilities Grant, NHS minimum contribution, and local authority grants.

Councillor Graham Day, Cabinet Member for Adults and Health Care, presented the report, explaining that the BCF is a national programme focused on integrating preventative care for individuals with complex needs, aiming to help them remain independent at home for longer, improve outcomes, and reduce pressure on hospitals. He highlighted that the agreement ensures BCF resources are used lawfully, with local oversight through the Health and Wellbeing Board. The agreement also covers financial contributions, governance, risk sharing, and audit information.

During the discussion, Councillor Day emphasised the significant benefits for Havering residents, including strengthened joint commissioning and improved value for money. He also noted the importance of this agreement in light of a recent CQC report that rated services as needs improvement, stating that efforts are underway to work with Queen's Hospital to address these issues.

Questions from councillors focused on the confidence in Havering's neighbourhood model to deliver against the report's priorities, the greatest challenges, and funding shortfalls. Councillor Day acknowledged funding as a massive issue and discussed efforts to secure money back from the NHS for patients with complex needs. He also highlighted the need for greater integration with Queen's Hospital.

Councillor Good questioned the overall cost of the BCF and how it compared to previous years, expressing concern about the projected savings of £500,000. Councillor Day responded by explaining his personal experience with the care system and his desire to prevent hip fractures in the elderly through measures like padded pantalons. He also discussed potential savings related to carers' support, though acknowledged this was work in progress.

The Finance Director confirmed that the council's contribution to the BCF remained the same as the previous year, and that the BCF is now part of the council's overall grant funding. The Cabinet ultimately agreed to enter into the Section 75 agreement and delegated authority for approving final terms and monitoring implementation.

Council Revenue and Capital Outturn Report 2025/26

The Cabinet reviewed the Council's Revenue and Capital Outturn Report for the financial year 2025/26. Councillor Sue Benjamins, Deputy Leader of the Council and Cabinet Member for Finance, presented the report, highlighting that the outturn figures were considerably better than we feared a year ago.

The report indicated that the council's revenue outturn position showed an underspend of £17.4 million, and the Housing Revenue Account (HRA) had an underspend of £2.83 million. However, the Dedicated Schools Grant (DSG) showed a forecast overspend of £31.5 million, bringing the overall DSG deficit to £67.7 million.

Councillor Benjamins noted that the council had initially feared needing to borrow £88 million to balance the books for 2025/26, but due to improvements made, this figure had been reduced to £37.7 million. She thanked officers for their efforts in achieving this improved position.

The Cabinet noted the revenue outturn position and the financing of the overspend. They approved the Capital Outturn position for 2025/26 and noted the outturn for the council's earmarked reserves and general balances. The Cabinet also noted the write-off of debt approved by the Strategic Director of Resources.

During the discussion, Councillor Wilkins asked when details would be revealed on how the council proposes to remove the need for Exceptional Financial Support (EFS). Councillor Benjamins stated that they were revising figures and looking at savings in interest from loans not drawn down, but could not yet provide a specific year for being clear of EFS. She also mentioned that this partly depended on the government's attitude towards funding.

The report detailed significant capital expenditure in 2025/26, including £135.353 million, which resulted in outcomes such as over 17.5 km of roads resurfaced, the opening of Riverstone House, £2.3 million spent on home adaptations, and the purchase of additional properties to increase the council's housing stock. The report also highlighted the significant spend on the 12 estates regeneration project and the purchase of vehicles for the Passenger Travel Service.

The Dedicated Schools Grant (DSG) outturn showed a significant overspend of £32.235 million, primarily within the High Needs Block, attributed to rising numbers and complexity of children with Special Educational Needs (SEND). The report noted that the Department for Levelling Up, Housing and Communities (DLUHC) regulations had extended the Statutory Override for DSG until 2027-28, with a High Needs Stability Grant covering 90% of the accumulated deficit, conditional on the LA's SEND Reform Plan being approved.

The Housing Revenue Account (HRA) recorded an underspend of £4.34 million, which would increase HRA held balances. This was attributed to several variances, including underspends in treasury management and reduced costs through improved void turnround times.

The Cabinet noted the improvements in the council's financial position and approved the Capital Outturn position for 2025/26.