Havering’s Overview and Scrutiny Board, 13th October 2022

There was a stench of despair in Havering’s discussions about the 2023-4 budget.¹ The public consultation process will fail because residents don’t understand council budgets. They also think this budget is rearranging deckchairs on the Titanic.

Beginning with George Osborne’s Age of Austerity, 2010, local government has been starved of funds. His insane ‘policy’ was compounded with zero Council Tax increases followed by inflation ‘caps’. Havering’s lost a minimum of £70m annually since 2010 not including the ‘lost’ revenue from actual inflation increases.

The decline in funding has been accompanied by increased responsibilities in Children and Adult services. These services consume 70% of the budget, making an inexorable push towards a Section 114 notice which means decision making is put in the hands of the government.²Havering’s CEO was bleakly frank about this possibility. He said current section 114 notices applied to imprudent, badly managed councils but future notices would hit well run councils like Havering, which had run out of resources.³ In brief, Conservative government policies are bankrupting local government.

The council will lobby MPs and ministers. The CEO held out little hope but he’d work hard to get Levelling-Up money.

Addendum: How councillors reacted

Gerry O’Sullivan drew contributions from every councillor. Questions ranged from the abrupt, Mandy Anderson, (@21 minutes)⁴ to windbag, Philip Ruck (@50 minutes). Philip asked the killer section 114 question, eliciting the important CEO response. David Taylor’s (@71 minutes) dog-whistle questions didn’t get the preferred answers. Damian White worked hard as ‘lead’ opposition councillor. The others seemed over-whelmed by the complexity of it all.

Notes

1 Annotator Player (sonicfoundry.com)

2 CP524_financial_sustainability_Oct_2021.pdf (publishing.service.gov.uk)

3 Hear the comment @ 55 minutes

4 This is when she began speaking

Havering’s Cabinet: A First Assessment

The cabinet complained about government under-funding,¹ which is like sailors hating the sea. There was no discussion about the energy crisis, home-working and office accommodation, staffing and retention, interest rates and ways of dealing with any of this in 2023.

Chris Wilkins: (began²) He spoke repetitiously and occasionally lost his place. He neither highlighted pertinent issues nor contextualised them. He offered counsels of despair.

He hasn’t discovered he’s a policy maker.

Gillian Ford: (20 minutes) She leads the principal cost centre, Adult Services. Her brief comments included an anecdote about a quadrupling of staff for a care issue. Typical? Probably not – just pre-emptive shroud waving.

Her remarks were inadequate. Cabinet needed insights on her principal revenue vampire: staffing costs. (pro rata cuts would be £6.5 million of the £19 million needed)

Keith Darvill: (21) Keith didn’t comment on his budget, preferring waffle. Flooding is a significant problem but can costs be subsumed into current budgets? Ambitions needed outlining especially if involving capital and ‘Invest to Save’.

Keith’s speech needed preparing up front.

Ray Morgon: (24) Ray’s interventions gave momentum to the debate. He claimed that if the public understood that 70% of the Council’s revenue went on statutory services, they’d accept a deteriorating environment. Laughably, he thought Conservative MPs would lobby for more funding.

Graham Williamson: (32) His speech included the phrase ‘Perfect Storm’ to describe financial pressures. He was stoical about losing popularity when cuts bite. He worried about the Council losing control to Commissioners on the balanced budget issue.

The best speech of the night.

Barry Mugglestone: (42) He spoke about increasing car parking charges which, surprisingly, isn’t an increase at all – it’s a return to pre-pandemic charges. So that’s all right then.

He read his speech, which other cabinet members should copy.

Oscar Ford astonishingly didn’t speak. He’s lead member for Children’s Services, which destroys everyone else’s budget. Nothing! Not even, ‘Thank you’. (pro rata cuts would be £6.5 million of the £19 million needed)

Paul Middleton: (1:02) He ought to be aware that his budget is likely to be savaged. He supported the budget propositions as being responsible.

Addendum: Government funding 2010-2022

Government funding has declined from £70 million to £1.5 million. This decline began with George Osborne in 2010. If the £70 million had increased with inflation it would have become £96.4 million. The real shortfall is £94.9 million. Conservative governments have increased taxation by outsourcing it to local authorities. Havering’s two Conservative MPs have been the cheer leaders of this policy.

Inflation calculator | Bank of England

Notes

1 Cabinet meeting 28^th September 2022

2 Annotator Player (sonicfoundry.com) Times when they begin speaking, are in brackets

Havering’s Environment Overview and Scrutiny Committee, 21st July, 2021

Havering’s councillors are getting livelier. All five councillors, who were present, spoke. The energetic Darren Wise and Michael Deon Burton made five contributions each. Michael tends to be more conversational than Darren but, let’s not quibble. Darren set the Gold Standard. His first query cited a page reference (p39: appendix ‘A’ if you’re interested). There were also contributions from councillors Carole Beth and Matt Sutton along with the Chair, which is sort-of-obligatory so isn’t noteworthy. Nic Dodin was absent and I don’t think he was missed.

Item 7 was interesting. The funding of LBH’s traffic schemes turns out to be complex. There haven’t been any schemes completed since May because of funding issues with Transport for London. They in their turn can’t approve anything because the funding stream from the government has dried up. So LBH have green lighted injury reduction schemes and they can’t commence. Darren was disappointed that his pet scheme in Cambourne Avenue has failed at this funding hurdle. Interestingly no-one complained about this new wave Austerity programme which has been introduced by stealth.

There was a similar sub-text to the Rainham Creek item, Item 8. On this occasion it was the Environment Agency who haven’t coughed up. There will be a Topic Group on this issue, which will start after contractors have costed the clean up and remediation works. The wider point about flooding in the borough was touched on by the Chair, Carole, who described her personal experiences of flooding, and Darren.

Zoom continues its challenge. I don’t understand why senior officers were presenting items from home and in one case from her garden. The presentation of supporting documents was abysmal. Surely if councillors can attend in person so can officers.

Note

For the agenda see (Public Pack)Agenda Document for Environment Overview & Scrutiny Sub-Committee, 21/07/2021 19:00 (havering.gov.uk)