Key Points:
- Dagenham and Rainham MP Margaret Mullane met with Local Government Minister Jim McMahon to secure emergency funding for Havering Council.
- An £88 million capitalisation facility has been agreed in principle to help the Council set its 2025/26 budget.
- Havering Council has faced a financial crisis due to inadequate funding settlements over the past 14 years and significant demographic changes.
- Labour Government is working on a new Fair Funding formula, to be announced later in Spring, providing a three-year financial settlement.
- Immediate financial relief: Havering will receive a £13.5 million increase in Core Spending Power and an additional £10.6 million government grant for 2025/26.
- Margaret Mullane pledges to continue fighting for financial support for Havering, Barking, and Dagenham.
Why Did Margaret Mullane Meet with the Local Government Minister?
Margaret Mullane, MP for Dagenham and Rainham, held discussions with Local Government Minister Jim McMahon to secure emergency financial support for Havering Council, ensuring it can set its budget for 2025/26.
Over the past 14 years, Havering Council has struggled due to what Mullane described as “wholly inadequate funding settlements” from the previous Conservative Government. She emphasised that the combination of underfunding and significant demographic shifts had led the council into a severe financial crisis.
What Emergency Financial Support Has Been Secured?
Following the meetings, the Government has agreed in principle to an £88 million capitalisation facility, allowing Havering Council to stabilise its finances and set a budget for the coming financial year.
Additionally, Havering’s Core Spending Power will increase by £13.5 million, with an extra £10.6 million in government grants to provide immediate relief before a long-term funding solution is implemented.
How Will the New Fair Funding Formula Help Havering?
Mullane confirmed that the Labour Government is currently working on a Fair Funding formula, aimed at addressing disparities in local council funding. She stated that the new system would replace what she called a “yearly lottery” under the Conservatives and instead provide a structured three-year financial settlement for councils across England. The new formula is expected to be announced in Spring.
What Are Margaret Mullane’s Views on the Situation?
Speaking to the Havering Daily, Mullane criticised the previous government’s approach to council funding, stating:
“The situation facing Havering and so many other councils around England is a direct consequence of the failure of the last government to match funding resources to the needs of areas.”
She assured residents that she would continue advocating for financial support, adding:
“I can assure Havering and Barking and Dagenham Councils that I will always go into battle to look after the interests of residents of Dagenham and Rainham.”
What Happens Next?
With the £88 million capitalisation facility agreed in principle, Havering Council will now work towards finalising its budget for 2025/26. Meanwhile, the Labour Government’s Fair Funding formula is expected to be revealed later this Spring, providing longer-term financial stability for the borough and other councils across England.
