Key Points
- Residents in Havering will pay almost 5 per cent more in council tax from April 2026, with a proposed 4.99 per cent increase for the 2026/27 financial year.
- Havering Council is set to approve the tax hike, the highest possible without triggering a public referendum.
- Average Band D property residents will pay £2,424 annually, up from £2,313, an increase of £111 or £9.25 monthly.
- Similar 4.99 per cent hike implemented last April, raising Band D from £2,207.
- Council faces £72.7 million budget deficit entering 2026/27; previously saved by £88 million government bailout last year.
- Mounting pressures from housing and social care demands: 300 households seek housing help monthly, up from 200 in 2021; over £8 million spent on nightly lets and hotels despite 150 new homes found.
- Children’s services strained by 10.4 per cent population growth (2011-2021, above London 7.7 per cent average); 6 per cent child population rise largest in outer London, fourth nationally.
- Ofsted report notes social workers struggling with caseloads; rising needs for school transport and education, health, care plans.
- Council leader Ray Morgon states insufficient government support despite lobbying.
- Deficit revised to £71 million from £75 million for 2025/26, double last year’s £35 million; £32.5 million bailout last February.
- £40 million government funding allocated in December, up £10 million but deemed inadequate.
- Resident consultation: 600 responses, 55 per cent accept 5 per cent+ rise, 41 per cent oppose increase.
- Additional rises: 2.7 per cent in rents, fees, charges.
- Cost-saving measures include potential library closures (Collier Row, Elm Park, Gidea Park, Harold Wood, saving £300,000 yearly), converting car parks to housing, AI for children’s services.
- Overspent housing budget by £7.1 million last year on temporary accommodation.
- Cllr Chris Wilkins warns future shortfalls could hit £150 million without reform.
- £160 million cuts over past 15 years; 80 per cent budget on mandatory services.
Havering (East London Times) February 7, 2026 – Havering Council is poised to approve a 4.99 per cent council tax increase for 2026/27, pushing the annual bill for an average Band D property to £2,424 from £2,313, adding £111 yearly or £9.25 monthly, as financial pressures intensify. This maximum rise without a referendum mirrors last April’s hike, which elevated Band D bills from £2,207. The decision underscores the council’s battle against a £72.7 million deficit entering the new year, following a £88 million government bailout that averted bankruptcy last year.
What is Driving the Council Tax Hike in Havering?
Exploding demands for housing and social care are the primary culprits behind Havering Council’s fiscal woes. According to the Yellow Advertiser report, 300 households now approach the council monthly for housing assistance, a sharp rise from 200 in 2021. Consequently, the council shells out over £8 million annually on nightly lets and hotels for at-risk residents, even after securing 150 new family homes.
Children’s services face parallel strains from demographic shifts. Havering’s population surged 10.4 per cent between 2011 and 2021, outpacing London’s 7.7 per cent average, with the child population jumping 6 per cent—the highest in outer London and fourth nationally. An Ofsted report highlights social workers grappling with overwhelming caseloads, alongside double-digit increases in school transport needs and education, health, and care plans for pupils.
Local Democracy Reporter Sebastian Mann of The Havering Daily elaborates on these pressures, noting the council overspent its housing budget by £7.1 million last year on hotels and bed-and-breakfasts for vulnerable families. Cllr Ray Morgon, Council Leader, remarked:
“Despite constant lobbying and meetings with government ministers and civil servants, we have not been given the support we need to bridge the gap from last year.”
He added:
“Over the years, we have seen a substantial reduction in government funding and, sadly, it has been local residents who have had to make up a large part of the deficit. This has led to us seeing the fifth highest council tax in London. This is not fair nor sustainable.”
How Severe is Havering Council’s Budget Deficit?
Havering enters 2026/27 with a staggering £72.7 million deficit, building on last year’s near-bankruptcy staved off by an £88 million Westminster bailout. Earlier reports pegged the 2025/26 gap at £71 million, revised down from £75 million—more than double the prior year’s £35 million shortfall.
As reported by East London Times, Cllr Chris Wilkins, Cabinet Member for Finance, warns that without government reform, deficits could balloon to £150 million. The council has slashed £160 million from services over 15 years, leaving scant room for more cuts, with 80 per cent of the budget now locked into mandatory areas like housing, adult social care, and children’s services. Kathy Freeman, Havering’s Finance Director, deemed recent funding “disappointing,” based on deprivation levels rather than actual need.
Cllr Morgon confirmed the council applied for another £71 million government loan, following December’s £40 million allocation—a £10 million rise but insufficient for councils in dire straits. He criticised:
“The round of funding failed to help those councils most in financial need, despite all the earlier rhetoric about doing so.”
Per official documents, the council approved a 2025/26 budget with 4.99 per cent tax rise and 2.7 per cent fees increase after consulting 600 residents.
What Do Residents Think About the Tax Rise?
Public sentiment is divided, per a consultation of 600 residents where 55 per cent indicated willingness to pay 5 per cent or more, while 41 per cent opposed any increase. Cllr Morgon addressed this:
“It is either that or a massive increase in council tax.”
He reassured:
“The town hall won’t grind to a standstill. Services will continue for residents despite the budget gap. Staff and bills will still be paid.”
The Equality & Health Impact Assessment warns the 4.99 per cent rise could negatively affect all age groups’ ability to pay amid economic woes. Havering now holds London’s fifth-highest council tax, fuelling fairness debates. Official taxbase stands at 91,122 Band D equivalents for 2026/27, as agreed by Cabinet under Cllr Chris Wilkins.
Band D bills for 2025/26 were £2,313.55, with the new hike pushing to £2,424. Lower bands face proportionate rises: Band A to around £1,542 from prior levels.
What Savings Measures is Havering Council Implementing?
To plug gaps, Havering eyes controversial cuts. Sebastian Mann of The Havering Daily reports proposals to close four libraries—Collier Row, Elm Park, Gidea Park, Harold Wood—saving £300,000 yearly, set for cabinet approval.
Six underused car parks in Romford and Hornchurch will convert to housing towers, easing homelessness pressures despite resident opposition. AI tools aim to lighten social workers’ loads in children’s services amid youth population boom. Rents and fees rise 2.7 per cent.
The cabinet will review the tax scheme next week, with full council ratification by month’s end. Havering’s official site notes 2025/26 bills show a 5 per cent rise (actually 4.99 per cent per statute). Cllr Wilkins presented the taxbase decision on January 13, 2026.
Will Government Aid Prevent Future Crises?
Councillors decry inadequate central funding. Cllr Morgon lobbied ministers to no avail. East London Times quotes Cllr Wilkins: future gaps could reach £150 million without overhaul. The £40 million settlement fell short, per leadership.
Havering awaits borrowing approval to dodge Section 114 notice. Past £32.5 million bailout echoes in current pleas. As pressures mount—300 monthly housing pleas, £8 million temp housing, caseload crises—residents brace for sustained hikes unless reforms materialise.
