Reform UK Leader Keith Prince Demands Debt Cancellation in Havering 2026

Key Points

• Reform UK-led Havering London Borough Council has formally called on the Government to cancel its outstanding emergency borrowing and associated loan interest costs.
• The authority forecasts it will require £54m in exceptional financial support (EFS) for the current 2026/27 financial year, down from an earlier projection of £77m.
• Council officers have described a further request for exceptional financial support in the 2027/28 financial year as “unavoidable” owing to the “sheer size of the gap”.
• Havering Council’s projected budget gap for 2027/28 has fallen by more than £26m, from £81m in February 2026 to £55m, following tighter spending controls and over £13m in proposed savings and efficiencies.
• Council Leader Councillor Keith Prince stated that while the Fair Funding Review has recognised Havering’s underfunding, residents should not have to wait years for proper funding, urging the Government to cancel outstanding borrowing and loan interest costs.
• The budget report outlines an assumed Council Tax increase of 4.99 per cent for 2027/28, comprising 2.99 per cent for general services and 2 per cent for adult social care, ahead of public engagement events scheduled for November and December 2026.

Havering (East London Times) November 13, 2026 – Reform UK-led Havering LBC has formally called on the Government to cancel the authority’s outstanding emergency borrowing and loan interest costs as the council forecasts a £54m requirement for exceptional financial support in the current financial year and warns that a further bailout request for 2027/28 remains unavoidable.

As reported by LocalGov, the demand for debt cancellation follows fresh financial modelling ahead of the 2027/28 budget-setting cycle, in which council officers described an additional request for exceptional financial support next year as “unavoidable” due to the “sheer size of the gap”. While the authority has lowered its anticipated emergency borrowing requirement for 2026/27 from £77m down to £54m, senior figures maintain that servicing existing and future emergency loans places an unsustainable burden on local taxpayers.

As detailed in an official statement published by the London Borough of Havering and reported by Emily Carmichael of The Greater London Herald, Cabinet members agreed a report setting out the next steps towards balancing the council’s budget for 2027/28. The report identifies over £13m in proposed savings and efficiencies designed to narrow the remaining shortfall, building on stricter spending controls and financial reviews conducted since February 2026.

What Has Havering Council Leader Councillor Keith Prince Said About the Debt?

As reported by The Havering Daily and the London Borough of Havering, Councillor Keith Prince, Leader of Havering Council, directly addressed the authority’s financial trajectory and its demands to Whitehall. Councillor Keith Prince stated:

“We have reduced our projected budget gap by more than £26 million and substantially cut the exceptional financial support (loan) we expect to need from Government. Stronger financial discipline and closer scrutiny are making every pound of taxpayers’ money count.”

Outlining the scale of the remaining fiscal pressures, Councillor Keith Prince added:

“A significant gap remains, and difficult decisions lie ahead. We will keep challenging spending, finding efficiencies and prioritising the services residents need most. Where proposals affect residents, people must have the opportunity to understand the changes and have their say before decisions are taken.”

Addressing central government funding mechanisms directly, Councillor Keith Prince stated:

“The Fair Funding Review has finally recognised Havering’s underfunding, but residents should not have to wait years for the funding they deserve. We will keep pressing Government for that funding and the cancellation of outstanding borrowing and loan interest costs. Sustainable finances are about more than balancing the books: they underpin our Havering 2040 Vision: Creating London’s Super Suburb, growing our economy and improving services.”

How Much Has Havering Reduced Its Projected Budget Gap for 2027/28?

As reported by Emily Carmichael of The Greater London Herald, Havering Council’s projected budget gap for the 2027/28 financial year stood at £81m in February 2026. Following tighter expenditure controls, financial reviews, and the identification of further efficiencies, that projected deficit has been reduced by more than £26m to £55m.

In parallel, the authority has revised its forecast for exceptional financial support in the current 2026/27 financial year. Originally projected at a worst-case figure of £77m, the expected borrowing requirement has been reduced to £54m—reported in September 2026 monitoring figures as £54.2m—meaning the council anticipates taking on substantially less new emergency debt this year than previously estimated.

What Are the Primary Drivers of Havering’s Financial Pressures?

As noted in reports by the London Borough of Havering and The Havering Daily, despite internal cost reductions and tighter financial discipline, the authority continues to face acute statutory expenditure pressures. The primary drivers of the £55m shortfall for 2027/28 include:

• Rising demand and escalating unit costs in adult social care.
• Increasing demand and placement costs within children’s social care and special educational needs and disabilities (SEND) provision.
• Surging demand and expenditure for temporary accommodation and homelessness services.
• Ongoing debt servicing and interest costs tied to previous exceptional financial support borrowing.

What Does the Budget Report Propose for Council Tax and Public Consultation?

As reported by Emily Carmichael of The Greater London Herald and covered by The Havering Daily, the Cabinet report assumes a Council Tax increase of 4.99 per cent for the 2027/28 financial year. This proposed rise comprises 2.99 per cent for general council services and an additional 2 per cent ring-fenced for adult social care.

According to the London Borough of Havering, this figure remains a planning assumption rather than a finalised rate, with the exact Council Tax level scheduled to be determined during the final budget-setting process in early 2027. Separate public consultations will also be launched regarding individual service savings proposals where they directly affect local communities.

To inform residents about the budget-setting process and gather feedback on how proposals may affect them, Havering Council has scheduled two public engagement sessions:

• Tuesday 24 November 2026 (6:00 pm – 7:30 pm): In-person session at Havering Town Hall, Romford.
• Tuesday 1 December 2026 (6:00 pm – 7:30 pm): Online engagement event, with access details to be published separately by the council.

Background: How Did Havering Become Reliant on Exceptional Financial Support?

Havering London Borough Council has relied on the Government’s Exceptional Financial Support framework every year since the 2023/24 financial year to set legally balanced budgets without issuing a Section 114 notice. Unlike traditional central government grants, exceptional financial support typically takes the form of a capitalisation direction, which permits a local authority to treat day-to-day revenue expenditure as capital expenditure, funded either through the sale of council assets or through borrowing—commonly from the Public Works Loan Board—which must subsequently be repaid with interest.

In previous financial cycles under the former Havering Residents Association administration led by Councillor Ray Morgon, the council repeatedly warned that demographic shifts in outer London—specifically a rapidly ageing population alongside rising numbers of young families requiring statutory support—had outpaced Havering’s historical central government grant allocation. In September 2026, the Ministry of Housing, Communities and Local Government (MHCLG), through Minister for Local Government Jim McMahon, announced £91m in transformation funding shared across councils in receipt of exceptional financial support for 2026/27 and 2027/28, from which Havering received an additional £6.75m allocation. However, following changes in political control that saw Reform UK assume leadership of the council under Councillor Keith Prince, the administration has maintained that structural underfunding and accumulated loan interest obligations prevent the borough from achieving long-term fiscal independence without debt relief.

Prediction: How Could This Development Affect Havering Residents and Council Taxpayers?

The outcome of Havering Council’s request for the Government to write off its exceptional financial support debt carries direct financial and service-level consequences for the borough’s residents, council taxpayers, and vulnerable service users.

If the Ministry of Housing, Communities and Local Government rejects the call to cancel Havering’s emergency borrowing and interest obligations, the council will remain legally bound to service tens of millions of pounds in debt from its annual revenue budget. For Havering residents, this means a substantial portion of locally raised revenue—including the assumed 4.99 per cent Council Tax increase for 2027/28—will be absorbed by interest payments rather than frontline services. Consequently, households would face a higher likelihood of deeper reductions in non-statutory services, increased fees and charges across council facilities such as parks and car parks, and stricter eligibility thresholds for discretionary support as officers attempt to close the remaining £55m gap.

Conversely, if central government grants full or partial debt relief, or accelerates transitional funding under the Fair Funding Review, Havering Council would immediately release revenue currently tied to debt repayments. While a further EFS request for 2027/28 would still be required to bridge the structural gap in the short term, debt cancellation would reduce the severity of future service cuts and enable the administration to stabilise statutory adult social care, children’s services, and temporary accommodation budgets over the medium term.