The Havering Council Cabinet met on Wednesday 08 July 2026 to discuss and approve key agreements and financial reports. The meeting saw the approval of a Section 75 Agreement with NHS North East London ICB to govern the delivery of the Better Care Fund for 2026-2027, and the noting and approval of the Council's Revenue and Capital Outturn Report for 2025/26.

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

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 Havering residents through the BCF. 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 and long-term care.

Councillor Graham Day, Cabinet Member for Adults and Health Care, presented the report, highlighting that the total BCF for 2026-2027 is £40.9 million. He emphasised that approving this agreement supports lawful access to BCF resources, strengthens joint commissioning, reduces duplication, and improves value for money. The agreement also supports key priorities such as hospital discharge, re-enablement, domiciliary care, and community-based support.

During the discussion, Councillor Day addressed concerns about the neighbourhood model's ability to deliver against priorities, stating confidence in its potential and highlighting ongoing efforts to integrate services with Queen's Hospital to reduce hospital admissions. He also acknowledged funding as a significant challenge but expressed optimism about potential savings and improved collaboration with healthcare partners.

Councillor Goode questioned the projected savings of £500,000, expressing concern about the ambition of this figure. Councillor Day responded by explaining that the current focus is on improving the CQC report rating, which requires significant funding, and that while savings are a long-term goal, immediate improvements are paramount. The Finance Director confirmed that the council's contribution to the BCF remains consistent with previous years.

Councillor Stanton raised a pertinent question about ensuring a workplace culture that recognises the holistic benefits of preventative measures, rather than focusing solely on individual budget lines. Councillor Day assured that a more holistic approach would be taken, considering the wider community and resident benefits.

Cabinet agreed to delegate authority to approve the final terms of the Section 75 agreement to the Cabinet Member for Adults and Health and the Strategic Director of People. They also delegated the function of monitoring the implementation and operation of the BCF and the Section 75 Agreement to the Cabinet Member for Adults and Health, and authority for all necessary decisions to the Strategic Director of People.

Council Revenue and Capital Outturn Report 2025/26

Councillor Sue Benjamins, Deputy Leader and Cabinet Member for Finance, presented the Council Revenue and Capital Outturn Report for 2025/26. She reported that the financial position for the year was considerably better than initially feared, with the need for exceptional financial support reduced from an estimated £88 million to £37.7 million. This improvement was attributed to strict spending controls, recruitment freezes, and a significant reduction in agency expenditure.

Cabinet noted the revenue outturn position, which showed an underspend of £37.7 million against the original budget after accounting for exceptional financial support. This was achieved through various cost-saving measures, including recruitment controls, reduced agency spend, and efficiencies identified across departments. The report detailed underspends in the People and Place directorates, with notable savings in Ageing Well and Environment services. However, the Living Well directorate experienced an overspend due to increased complexity and costs in learning disability placements.

The report also highlighted that the Council's medium-term financial strategy and costings are being updated to reflect the ongoing benefits of the reduced borrowing requirement. Councillor Benjamins reiterated the council's commitment to pressing the government for fairer funding for the borough.

Cabinet approved the Capital Outturn position for 2025/26, which detailed significant capital expenditure across various areas, including highways improvements, school building works, housing stock enhancements, and regeneration projects. Notable outcomes included the opening of Riverstone House, the resurfacing of over 17.5 km of roads, and investment in new vehicles for the Passenger Travel Service. The report also detailed the funding sources for the capital programme, including capital receipts, grants, and borrowing.

Cabinet noted the outturn position for the Council's earmarked reserves and General Balances, which had increased to £20.2 million. The report also noted the write-off of debt approved by the Strategic Director of Resources, amounting to approximately £0.953 million for social care debts and £1.353 million for parking penalty charge notices, deemed unrecoverable after extensive collection efforts.

During the discussion on the report, Councillor Wilkins inquired about the timeline for removing the council's reliance on exceptional financial support. Councillor Benjamins stated that this was under review and dependent on future government policies and the council's financial performance. Councillor Wilkins also asked about the success of negotiations with health partners regarding their financial contributions, to which Councillor Day responded that progress had been made, particularly in children's social care, and that efforts were ongoing to secure the correct funding from health partners.

Councillor Stanton raised questions about the capital programme review and flexibility for updating plans based on local needs, particularly regarding family housing. Councillor Whitton, Cabinet Member for Regeneration, assured that the need for family housing was a priority and that discussions were underway with the GLA regarding future grant funding.

Councillor Goode raised technical questions regarding the capitalisation directive and debt write-offs, seeking clarification on the cross-party representation on the debt board. The Finance Director provided clarification on the capitalisation figures, and the Leader of the Council, Councillor Keith Prince, assured Councillor Goode that he would be invited to join the debt board, emphasising the value of cross-party input. The Finance Director also confirmed that details of debt write-offs would be included in future reports.

Cabinet agreed to note the revenue outturn position and the outturn for earmarked reserves and general balances, and approved the capital outturn position for 2025/26. They also noted the write-off of debt.