“Even with the difficult proposals put forward in this consultation, the Council still has a budget deficit of £12 million.”1 (my emphasis)
Only half of the savings/revenue increases are available for consultation. Another £12m is floating about. The consultation is farcical. Voters are expected to see half a budget and take the other half on ‘trust’. In other words, agree half a budget and get £12m of cuts sight unseen.
The £12 million deficit demands an 8% council tax increase ABOVE what’s proposed.
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Huge deficits need bold, imaginative transformative options. Avoiding bankruptcy in February 2024, requires brave leadership.2
Instead, the Administration has lost hope.3 The majority of the £11.93m cuts and savings programme is contained within five items, none of which are sufficient for the task in hand.4 Financial juggling and increased parking charges, for example, are 49% of the £11.93m. Toxic options, which would solve the challenge, are avoided. Havering waits for government Commissioners to do the unpopular dirty work.5
Keith Darvill6 said borrowing £12m from the government is “massive.” Massive means: £12m at 7.1% (RPI + 1%) for 20 years = £17m interest.7 Mortgaging future generations for a year’s deficit. The elephant in the room? 2025-6, 2026-7 and so on.
A genuine consultation should offer a 13% increase in council tax OR brutal cuts in services. Undemocratic play-acting is absolutely unacceptable in a mature democracy.
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This is a government inspired *perfect storm* for local authorities, not just Havering.
“I don’t believe that there is a conspiracy to destroy local government. But I think we are sleepwalking towards a position where councils just won’t be viable.”
He said that while assets could be sold off in the short term, it would lead to a big transfer of wealth of public assets into private hands.”8
I think there is a conspiracy to privatise local authorities and loot their assets.
Notes
1 Havering Budget Consultation 2024 – London Borough of Havering Council – Citizen Space
2 Romford Recorder2 headline was: ‘Council could declare bankruptcy in 3 months’. 24th November 2023 p3 Reporter Josh Mellor
3 The consultation document is here Budget Leaflet.pdf (havering.gov.uk) The summary statement is here 1 APPENDIX A SUMMARY SAVINGS PROPOSALS.pdf (havering.gov.uk)
4 Ibid (Appendix A) The top 5 account for 49% (£5.85m) the other 51% is 35 items the smallest of which is £23K
5 Reducing the library service to two libraries, closing Romford market and ending the 30 minutes free period for parking are obvious starting places.
6 Romford Recorder 24th November 2023 p3
7 United Kingdom Retail Price Index YoY (tradingeconomics.com) RPI = Retail prices index
8 Jeremy Hunt’s budget cuts spark fears of ‘existential threat’ to English councils (msn.com)
Politics in Havering 