“"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. 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. 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 Creating London’s Super Suburb, growing our economy and improving services."
Havering Council outlines budget plans amid £26m gap reduction
The council aims to balance its 2027/28 budget with proposed savings and efficiencies, following significant financial improvements.
By Emily Carmichael
••3 min read
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Havering Council has outlined its budget plans for the upcoming year, reporting a significant reduction in its projected budget gap.
The council has made substantial progress in improving its financial position, reducing the projected budget gap for 2027/28 by over £26 million since the budget was initially set. This includes a £16 million reduction since June under the new Administration.
Cabinet has agreed to a report detailing the next steps towards balancing the Council’s budget for 2027/28. This includes over £13 million in proposed savings and efficiencies to help address the remaining shortfall. The report initiates the formal budget-setting process, building on strengthened financial controls and reduced reliance on exceptional financial support from the Government.
The projected budget gap for 2027/28 has fallen from £81 million in February to £55 million, attributed to improved financial controls and further savings. The forecast requirement for exceptional financial support in the current financial year has also decreased from £77 million to £54 million.
Despite these improvements, Havering faces ongoing financial challenges, primarily due to rising demand and costs in adult and children’s social care, temporary accommodation, and other statutory services. The Medium Term Financial Strategy (MTFS) proposes approximately £13 million in savings for 2027/28, with £11 million from newly identified proposals. Details on public consultations will be announced separately.
The report also assumes a 4.99% Council Tax increase for 2027/28, comprising 2.99% for general services and an additional 2% for adult social care. A final decision will be made during the budget-setting process in early 2027.
Two public engagement events will be held for residents to learn more about the budget proposals and their potential impact: Tuesday 24 November, 6pm – 7:30pm, at Havering Town Hall, Romford, and Tuesday 1 December, 6pm – 7:30pm, online.
Based on information from the official source: London Borough of Havering (12/11/2026)
