The Council borrowed £54m to pay its bills in Spring 2024 (see Addendum). They are also selling carparks to avoid (postpone?) bankruptcy. Four are going.1 The Romford Recorder 2 says they’re worth £9m and that’s why they’re being sold. The other reasons are,
“…they are underused and the aim is to have a better use of the land that can help the council reduce its waiting list backlog for affordable homes..”3
“Underused” is slippery. Two figures need stating, (1) target income, and (2), how big was the shortfall? How long will it be before the lost income equals £9m and, will the council tax from the new properties compensate?
Why is this important?
Finance is paramount when facing bankruptcy and trumps other considerations.4 Will the sales help or hinder the council’s problems? £9m is 11% of the shortfall over two years: it’s a drop in the ocean. And the revenue is gone for ever.
Selling income generating assets to fund revenue is insanity. The government is privatising Havering by the deliberate under-funding of statutory services.5 Voters will notice when quality-of-life assets are lost. But by then no-one will be able to do anything about it.
The government is forcing Havering to sell assets. The government doesn’t want to fully fund statutory services which Havering must provide. They don’t like the truth that: Taxes are the price we pay for a civilised society.6
Addendum: The Loan
This is a government drawdown facility for unfunded statutory5 bills. The loan is charged at 7% for 20 years. The interest for 18 full years is £68m. In brief, it increases Council Tax until 2044.
Notes
2 Romford Recorder 26th April 2024 front page
3 loc.cit
4 The massive negative response didn’t see it like that at all. p18
5 Statutory services are those that the council must provide before anything else.
6 Taxes Are What We Pay for Civilized Society – Quote Investigator®
Politics in Havering 
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