Report: Improvement & Transformation Plan

Presented by: Councillor Ray Morgon, Leader of the Council

Cabinet

(1)  Approved the Improvement and Transformation Plan.

(2)  Authorised the Chief Executive to implement and deliver the Plan and to agree any changes to the Plan as he shall deem necessary to satisfy the terms and conditions of the capitalisation directive.

Cabinet noted that the delivery of actions set out within this plan is the responsibility of theExecutive Leadership Team and that this plan will be subject to regular and frequent monitoring and reporting.

Report: Improvement & Transformation Plan

Presented by: Councillor Ray Morgon, Leader of the Council

Summary

Havering is a well-run cost effective Council. Our unit costs are the 16th lowest compared to 16 other Outer London boroughs, i.e. the lowest as assessed by LG Futures. We are ranked by IMPOWER (at their last point of formal publication) as being the 5th most productive council in the country. Our income collection for Council Tax is in the top-quartile in London. We have consistently sold off assets (over £160m since 2013/14) to minimise borrowing costs of our capital programme, and Members have maximised Council Tax increases throughout austerity.

The Council takes its financial responsibilities very seriously. We have maximised Council Tax income, have one the lowest unit costs in the country, we have sold assets, we don’t have high levels of borrowing and now we are depleting our reserves.

After significant systemic underfunding since 2010, the Council’s financial challenge is no longer one we could manage without Government intervention. A Capitalisation Direction was applied for to prevent us from issuing a S114 for this financial year (2024/25). As part of the requirements to receive the capitalisation direction, an Improvement & Transformation Plan is required to be submitted no later than 27^th August.

Another condition of the Capitalisation Direction is for the Council to undergo an independent Financial Management review. The review is an assessment of Havering’s Financial Management arrangements and governance arrangements, and the Chartered Institute of Public Finance and Accountancy have been commissioned by the Department of Levelling Up, Housing and Communities to undertake this on their behalf, and submit a report to them directly in due course.

This review has commenced and is likely to conclude at the end of July. The Council must incorporate the review recommendations in the Improvement and Transformation Plan prior to its submission.

Cabinet

(1)  Approved the Improvement and Transformation Plan.

(2)  Authorised the Chief Executive to implement and deliver the Plan and to agree any changes to the Plan as he shall deem necessary to satisfy the terms and conditions of the capitalisation directive.

Cabinet noted that the delivery of actions set out within this plan is the responsibility of theExecutive Leadership Team and that this plan will be subject to regular and frequent monitoring and reporting.