Tag: escalating debt

Havering Council Meeting: Budget Setting, 4th March 2026

There is a legal requirement that Councils have a balanced budget. This is impossible because Havering is bankrupt. Its statutory commitments can’t be funded from revenue. The strategy is to add to debts to pay revenue commitments. This is fiscal insanity as the interest can’t be paid.

Enter Chris Wilkins, Cabinet Member for Finance (13 minutes).1,2 He declared the budget will be legally balanced because…..he’d organised more debt. The debt mountain will be £229m by 2029. Chris gives an excellent impression of being a nodding donkey. He doesn’t seem to understand what he‘s reading. A debt of £229m means interest payments will be 30% of the budget by 2029. Chris didn’t mention interest charges during his 13 minutes speech. Philip Ruck (1:31) noticed and was outraged at the sheer folly of it. Annual (unpaid) interest payments would be about £17m and would be added to the capital. Credit card maxxed out!

Keith Darvill (25) introduced the Labour amendment3 self-consciously. He was ultra-defensive and apologetic – as if he was speaking out of turn.

Michael White (36) gave a masterful speech. He demonstrated his command of the subject and critiqued HRA’s four years in a probing, forensic way. The principal highlight was his remarks about the GLA budget, which amounts to nearly 25% of the total Council Tax bill. He made play about the lack of a medium-term plan for the dire budget pressures. He worried about the impact of the Israel-USA-Iran war on interest rates. Michael made obvious remarks about relying on loans for revenue expenditure. Thus, he successfully trashed Chris’s blissful optimism.

Martin Goode (53) denounced the reliance on long-term debt to fund current expenditure. He demanded that the Council throw in the towel and face facts. He wants Government Commissioners to take over the Council. Gillian Ford (1:00) said only the section 151 officer could ask for Government assistance like this. That ought not be a problem as she had previously stated HRA was following an unsustainable strategy.

Keith Prince (1:01) has a curious flippant style, which mostly falls flat. He worried about debt and the borough’s future Council Taxpayers. Interestingly he claimed the borough’s woes were turbo-charged by the lack of detailed scrutiny. This is theoretically likely but Havering’s culture of absenteeism4 by councillors means more scrutiny is unlikely. Unlikely because it involves doing homework and turning up.

Ray Morgon (1:28) indulged in chit-chat. Judith Holt (1:34) pointed out special skills were needed to read a budget book 1070 pages long. Nisha Patel (1:40) did a good review of Michael’s speech reinforcing some points. Gillian Ford (1:42) had a breathless shopping list of achievements. The concept ‘strategy’ appeared many times. Brian Eagling (1:45) said that football pitches had seen fees rise yet again and that sport should be promoted. Oscar Ford (1:48) used fluent management speech. This didn’t always coincide with reality. Barry Mugglestone (1:51) was combative, which livened the meeting up. He and Keith Prince exchanged pleasantries about the Freedom Pass. They were both right, which made it more entertaining.

Jane Keane (1:56) did a Hollywood Oscar’type speech praising the Council’s staff. David Taylor (1:58) is a class act who will be badly missed. His nemesis, Andrew Rosindell, was given a quick going over. Andrew has consistently voted for the bankruptcy of Havering. Luckily he was in the chamber to enjoy David’s speech. James Glass (2:01) was demob crazy and is a loss. What he lacks in accuracy he makes up for with boyish enthusiasm.

Best speech: Michael White

Most sincere speech: Brian Eagling

Notes

1 Annotator Player All times relate to this webcast

2 Group spokesmen had 20 minutes for budget speeches. Astonishingly, Wilkins only used 13 minutes.

3 This Council calls on the Administration to introduce and promote an SME Support Package, initially, funding such a proposal from unspent UKSPF (and/or other unspent grants) seeking partnership for such a support package with organisations such as the Chamber of Commerce and the Adult College. (Public Pack)Agenda Document for Council, 04/03/2026 19:30 p1073

4 Havering Councillors and Their Attendance – Politics in Havering

Havering’s Cabinet Meeting, 5th February: Budget (part two)

“I believe in miracles….” Hot Chocolate (1975)1

The meeting began with Chris Wilkins, the cabinet member for finance, reading a document which he didn’t appear to have written (1:26).2 Very sensibly, HRA don’t use Chris as their main man during financial discussions.

The discussion was brutal.

Ray Morgon set his stall out. The government review of Havering’s finance is vital to his strategy. The Fair Funding Review (1:31) is the miracle which will stave off Havering’s financial catastrophe. The Chief Executive (1:46) said that he wouldn’t consider requesting a council tax increase beyond 4.99% because Havering’s problems weren’t caused by decision-making in Havering. This reflects HRA’s policy.

The director of Finance expressed caution. She was ‘very concerned’ about the long-term sustainability of Havering (1:34). Keith Darvill (1:32) probed forensically, discovering that the interest on the capitalisation programme hasn’t been paid. This means debt accelerates each year through the joys of compound interest. The director said that the conversation will be ‘very different’ in 2028 if nothing changes.

“…if you have debt, compounding of the interest you owe can make it increasingly difficult to pay off.”3

Capitalisation Funding for day-to-day expenditure is insanity.

The Chief Executive (1:31) said after his meeting with the minister there would be no change in government policy concerning debt repayments.

HRA is hoping the government will back down first and won’t enforce the debt. HRA is engaging in a form of “Can’t pay, Won’t pay.”4 Havering is depending on safety in numbers. They’re hoping that along with the 18 other councils which are being buried alive in debt, they will have to be rescued.

Notes

1 The lyrics aren’t about local government finance. But are great fun. Read them. Relive the 70s!  i believe in miracles hot chocolate lyrics – Search

2 Annotator Player All times refer to this webcast

3 The Power of Compound Interest: Calculations and Examples

4 This is a Marxist play, 1974, by the Italian Dario Fo which is a satire on consumer resistance to high prices. Can’t Pay? Won’t Pay! – Wikipedia