The Conservatives had a humdinger of a motion for debate (see Addendum). It challenged the HRA/Labour *solution* to the budget deficit.1 This naïve commentator waited for fireworks from political heavyweights debating the future of Havering.
What should have happened
Keith Prince would denounce the £54m loan as reckless folly, mortgaging the future. He pointed out that £54m @7% for 20 years creates a stonking £68m2 in interest payments, more than doubling the original debt. Keith could continue that the loan ‘kicked the can down the road’. In 2026 everything would be the same with Adult, Children’s Services and Homelessness turbo-charging the deficit. What, Keith thundered rhetorically, would Ray Morgon do then? Borrow another £54m?
Ray Morgon would angrily riposte that defending government funding was bizarre. In 2010, Havering’s grant was £70m and in 2023, £1.9m. Meanwhile, after 14 years of government mis-management, inflation added 47% to costs.3 Therefore, Havering needs a £103m grant just to stand still! Additionally, the council had unfunded responsibilities. Homelessness came from government policies with enormous costs for the council. Ray might finish by saying everything will be different in two years’ time.
What did happen
Ray Morgon and Keith Prince agreed not to have a debate and went home two hours earlier than usual.
Addendum: Conservative Motion
This chamber calls on the council to release to the public the full letters, from the Government Ministers and from the Leader, regarding the Capitalisation Directive. The chamber calls on the Government to provide the funding as a grant instead of a loan.4
Best speech: None
Runner-up: None
Best sarcasm: Barry Mugglestone
Notes
1 Havering Council: Budget Setting – 28th February, 2024 – Politics in Havering
2 It might not be, we haven’t seen the T&Cs yet. Actually the money is ‘drawn’ down over the next two years so the £68m is calculated for 18 full years of interest.
3 Inflation calculator | Bank of England
4 Public reports pack 27th-Mar-2024 19.30 Council.pdf (havering.gov.uk) p117
Politics in Havering 
I’m reminded of Parkinson’s Law of meetings- the time spent discussing an item of spending is inversely proportional to the amount under discussion.
£54 million is a huge sum of money. There are about 100 000 households in Havering, so it’s around £500 each. It’s in nobody’s interest to talk too much about the situation, because there isn’t really an answer that is in Havering’s hands.
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Thank you for your comment.
*…there isn’t really an answer that is in Havering’;s hands.*
Actually there are answers but the council is unwilling to grasp the nettle..
1 Council tax could be increased beyond 5% after a referendum
2 Significant cuts to non-statutory services could be made. E.g reduce the number of libraries to three. Sell carparks. Reduce office space by utilising ‘Work-from-home’. End the 30 minutes free parking for Hornchurch and Upminster and introduce fees in the popular parks (like Essex)
3 Go bankrupt and get government commissioners in to do the ‘dirty work’.
Politics is about choices and the council have made those choices but they aren’t the only choices available. A rock and a hard place?
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