Havering and Newham among London Councils that get ‘exceptional’ government funding

Last updated: April 14, 2025 11:18 am

1 year ago

Key Points:

Six London councils to receive “exceptional” financial support from the government.
Councils include Barnet, Croydon, Enfield, Haringey, Havering, and Newham.
Funding aims to sustain public services, protect community assets, and maintain economic stability.
Financial allocations: Croydon (£136m), Havering (£88m), Barnet (£55.7m), Newham (£51.2m), Haringey (£37m), Enfield (£10m).
Lambeth to receive £40m for Housing Revenue Account (HRA) management.
24 other councils across England to receive similar support, including Birmingham (£180m) and Bradford (£127.1m).
Minister of State for Local Government, Jim McMahon, reiterates government’s commitment to supporting councils.
Emphasis on collaboration rather than punitive measures for struggling councils.

LONDON – Six London councils have been granted “exceptional” financial support from the UK government to help balance their budgets, as announced by the Ministry of Housing, Communities and Local Government.

The councils – Barnet, Croydon, Enfield, Haringey, Havering, and Newham – will receive significant financial allocations for the 2025/26 fiscal year, ensuring the continued provision of essential public services, protection of community assets, and economic stability.

How Much Funding Has Been Allocated?

The financial allocations for the six London councils are as follows:

Croydon: £136 million
Havering: £88 million
Barnet: £55.7 million
Newham: £51.2 million
Haringey: £37 million
Enfield: £10 million

Additionally, Lambeth Council has been granted £40 million specifically to manage financial pressures within its Housing Revenue Account (HRA) – a fund dedicated to running council-owned housing stock.

What Does the Government Say About This Funding?

Minister of State for Local Government and English Devolution, Jim McMahon, acknowledged the financial struggles faced by local councils and emphasised the government’s commitment to stabilising local governance.

“We are under no illusion of the state of council finances and have been clear from the outset on our commitment to get councils back on their feet,” McMahon stated.

Encouraging local leaders to seek assistance, he added: “Be assured we will offer a relationship of partnership – not punishment – in our joint mission to improve public services for communities and create economic stability.”

Which Other Councils Across England Are Receiving Financial Aid?

Beyond London, 24 other councils across England will also receive “exceptional” financial support. Among them:

Birmingham: £180 million
Bradford: £127.1 million

These allocations reflect a broader effort by the government to address financial instability among local authorities nationwide.

What Does This Mean for Public Services?

The financial support aims to safeguard essential services, including social care, housing, and community infrastructure, which have been under significant strain due to budget deficits. Without such intervention, councils faced the possibility of cutting critical services or increasing local taxes to balance their budgets.

What Happens Next?

With the funding now allocated, councils will be expected to manage their financial plans effectively and work closely with the government to ensure sustainable economic stability. Future assessments will determine whether additional support will be required.

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