Havering’s Budget: Between a Rock and Hard Place

Havering’s administration is delusional. They refuse to accept that government underfunding of Havering is policy. The government is in perma-turmoil and their policies are too.¹ The administration ignores all the evidence and asks MPs to assist. It’s as if Havering’s MPs are an unknown.²

On consecutive nights, government underfunding was demonstrated.^3,4On the 7^th February, officers used many slides showing the iniquities of Outer London’s funding formula. Havering is hardest hit because of our peculiar demographics.

Gillian Ford is a fan of lobbying despite knowing the funding formula hasn’t changed since 2013.⁵ Oscar Ford focused on demographic changes in Havering with costs associated with increasing the numbers of children.⁶ Lobbying won’t change anything. Paul McGeary said rents only increased by 7% instead of 13.6% because of government intervention. A government decision to reduce rent increases from 13.6% to 7% was for Housing Benefits⁷ reasons not to help tenants during the cost-of-living crisis.

The council should lobby to increase the council tax cap.⁸ An increase to 10% would mean Havering avoiding bankruptcy in 2026. Lobbying to avoid bankruptcy would embarrass the government. It’s high-risk but death by a 1,000 government generated cuts is worse. Government will blame Havering whatever decisions are made. Why not take the battle to the government and pillory them for capricious incompetence?

Notes

1 Three Prime Ministers and four Chancellors of the Exchequer

2 Julia Lopez is a minister and wont bite the hand that feeds her. Andrew Rosindell’s a veteran MP who always supports the government on financial matters.

3 Overview and Scrutiny Board meeting 7^th February 2023 Annotator Player (sonicfoundry.com)

4 Cabinet meeting 8^th February 2023 Annotator Player (sonicfoundry.com)

5 Go to 38-43 mins where she cites two organisations, which, allegedly, have influence

6 Go to 45 minutes. He says the government is “incapable”. This implies he knows the government is incompetent insofar as they don’t understand their own policy.

7 At 9 minutes

8 Four bankrupt councils have increased their council tax by 10%+. They were all bankrupted by searching for additional revenue to pay for statutory services through commercial activities. They all failed

Havering’s Elections and the Budget, 2022-23

In the good-old-days voters knew where they stood. Conservatives were heartless; Labour were warm-hearted; Resident Associations (RA) loved pavements. Happy days!

Rishi Sunak’s Stately Home in Yorkshire: Council Tax Band H

Rishi Sunak, the Chancellor, set Havering’s Council Tax at 3%. He imposed the principal budget item, Adult Social Care, without funding it. This budget is demand led so no-one knows how much it will eventually cost. Councillors do know Havering has the oldest population in London and dozens of Care Homes. Central government has imposed Stealth Taxes on Havering for 12 years.

A £150 million budget¹ was nodded through with passionate debate about £70,000 ‘savings’ from Councillors Allowances. This would be allocated to street cleaning. An RA policy!

The 3% Council Tax increase is inadequate. Inflation is 7% rising to 10% by December. The in-coming Administration will have to make some grim decisions in October.

Council officers wrote an analysis of ‘risk’ factors for the budget.²Item C4 refers to business rates losses, “it is hoped that the Government will fully recognise this in future settlements”. Interest rates have increased twice in three months. C8 says, “An increase in interest rates will have a direct impact on the Council’s treasury strategy.” Each 1% increase equals £1 million of additional expenditure. C19 notes a potential loss of “several million pounds” and C22 says government alteration in charging for ‘Green Waste’ will cost £800,000.

The Administration’s 400 job losses will save £7 million.³They are, “Staffing Reductions Through Efficiency”. Achieved by removing, “activities that do not benefit residents.” Technology [has] “moved on significantly… [and] efficiencies through modernising work processes and improving service offers to our customers and partners.” A budget based on a ‘wish and prayer’.

Jeff Tucker declared he hadn’t read the budget before speaking for 25 minutes. But it was Rishi Sunak’s Stealth Taxes which needed discussing and he wasn’t present.⁴So perhaps Jeff got it right.

Notes

1 Issue – items at meetings – 2022/23 Budget and 2022-2026 Medium Term Financial Strategy | The London Borough Of Havering

2 Microsoft Word – Appendix D – Risk Register (003) (havering.gov.uk)

3 Appendix A Budget Savings.pdf (havering.gov.uk)

4 Havering Council Tax Meeting, 2nd March 2022 – Politics in Havering

Havering Council Tax Meeting, 2nd March 2022

Setting a council tax is a statutory duty. It was dispiriting watching a debate dominated by trivia. The Mayor didn’t realise that he’s expected to terminate out-of-order speeches. Trivia degenerated into drivel.

The single highlight was Roger Ramsey (@ 2 hours 12 minutes in the webcast). Calm, measured and magisterial, he noted irrelevance with a weary acceptance. His focus was the demand-led Adult Social Care. That budget literally can’t be controlled. It’s a statutory obligation. Children’s services are also demand-led with huge expenditure for personalized transport during the pandemic. Massive shortfalls in government funding were highlighted. This was described as a Stealth Tax (Ray Morgon: (@ 50 minutes).

Damian White (@ 25 mins) is turning into a Socialist. He worried about the cost-of-living crisis, environmental funding, the stigma of Food Banks, and substandard KS3 achievements in schools. 400 job losses which will, amazingly, improve service delivery was used as an example of tough decisions. The government’s £150 reduction of Council Tax for bands A-D was welcomed. Belatedly he recognised that Special Responsibility Allowances (SRA) mattered in an election year and offered half-baked proposals.

Keith Darvill (@1 hour 35) talked of a perfect storm of increases in Rent, Council Tax, National Insurance and inflation, especially energy costs. Ray Morgon actually made a policy proposal. Savings from reducing SRAs would go to street cleaning. There was a lot of expectations on productivity gains from digital working. This was rubbished by David Durant (@ 3 hours 31) who discussed cyber-terrorism. Another policy proposal was by Jeff Tucker (@ 1 hour 53) who wanted fewer councillors (18) because officers made all the decisions anyway. He also proposed himself as Leader as he had ‘the most brains’.

Graham Williamson (@ 2:32) said savings on SRAs were irrelevant, being gesture politics. Gillian Ford (@2:41) did a tour d’horizon which included refugees, Green Flags in parks and Food Banks. I hoped for more.¹

Conclusion

Jeff Tucker is absolutely right that there are too many councillors. This meeting was a disgrace and should be used as a training programme for the incoming Mayor so they understand their role in chairing a meeting. Roger Ramsey is retiring and someone needs to step up and fill his shoes as ‘the only grown-up in the room’.

Webcast

Annotator Player (sonicfoundry.com)

Note

1 Other speakers: Martin Goode, Chris Wilkins, Ciaran White, John Tyler, Robert Benham, Darren Wise, Bob Perry, Joshua Chapman, Graham Williamson, Reg Whitney, Ron Ower, Viddy Persaud and Dilip Patel. There may have been others but my webcast failed at 3 hours 42 and so I missed the last hour.