Boris Johnson’s economic philosophy was straightforward: I want my cake and I want to eat it.1 Ray Morgon’s Cabinet would do this too if it wasn’t fantasy. Havering once had a substantial government grant but Osborne’s Age of Austerity programme ended that.2 Havering’s budget is apparently balanced but this is achieved by ‘smoke and mirrors’. Damian White’s March budget is a classic example.3 400 redundancies were penciled in, without any loss of services. A claim made with a straight face.
Local government finance is boring until the bills arrive. (Most people used to pay energy bills without bursting into tears. Not anymore.) Since 2010, Havering’s government grant has evaporated from £70 million to £1.5 million. Havering hasn’t been allowed to increase Council Tax to fill the revenue gap. The inevitable decline in public services has accelerated and will continue.
‘Low hanging fruit’ will be picked. This means school crossing personnel, park gates left unlocked, fortnightly bin collections, library hours cut, swimming pool hours reduced for example. HRA’s sacred cow is street care but it might take a hit under the pressures.4
Setting Council Tax for 2023-4 will be hideous. The council is crippled by financing Adult and Children’s services, which are statutory.5 Will Kwasi Kwarteng cap Council Tax increases? Realistically 10% is needed but the Conservative government might find this politically unacceptable.
The government imposes duties on Havering council and denies the resources to fulfil them.
Notes
1 For Brexit it worked out this way Post-Brexit trade: UK having its cake and eating it, says Boris Johnson – BBC News On a personal basis he ‘paid’ for gold wallpaper and then got a dupe to actually pay Boris Johnson’s Wallpapergate: Leaked £200,000 estimate reveals flat renovation plan included £7,000 rug and £3,675 trolley | The Independent
2 Budget 2010: Pain now, more pain later in austerity plan | Budget | The Guardian
3 Agenda for Council on Wednesday, 2nd March, 2022, 7.30 pm | The London Borough Of Havering
4 ibid HRA councillors voted to reduced councillor allowances to pump money into street care in a pitiful example of ‘gesture’ politics.
5 Chris Wilkins led the debate. He floundered through a repetitious presentation. He weaved in and out of ‘pressures’ like a ship drifting without power. And the elephant in the room – the size of the Council Tax increase – wasn’t hinted at. Heroically Ray said that they should lobby the two Conservative MPs to see if they’d vote against the government. See Annotator Player (sonicfoundry.com) for the debate. Wilkins speaks for the first 20 minutes
Politics in Havering 
BREXIT, it just keeps giving. I wonder how the RA voted.
To increase council tax above 3% requires a referendum (sigh), which will say no. And residents will moan about the council rather than at the government.
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The 3% was this years limit. The government can alter the maximum any time they want. In theory it could be unlimited. The maximum is a recent innovation brought in during Osborne’s time. Realistically it should be about 10% but that’s unlikely as it would embed inflation into the economy even more.
I suppose that most of the RAs voted Brexit as did most of Havering and I imagine a lot of Labour voters too.
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