Havering LBC is to apply for a capitalisation direction as it bids to avoid issuing a section 114 notice next year.
Despite making savings, reining in spending and factoring in a maximum increase in council tax, the council still faces a gap in its budget for the next financial year.
A surge in demand for temporary housing and children’s services are the chief financial pressures facing Havering, which has imposed spending controls ‘until further notice’.
After budgeting for a 4.99% council tax increase, a gap of £12m remains to be bridged for 2024-25.
A report to a meeting of Havering’s scrutiny committee last night read: ‘The council cannot afford to wait for Government support that might not be forthcoming and so as had no alternative but to apply for a capitalisation direction to close the remaining gap.’
It added the council ‘had to take this route to avert a potential s114 notice in the new year’.
This article was originally published by The MJ (£).
If this article was of interest, then check out our feature, 'Preventing future Section 114 notices'.
