Chris Wilkins, Havering Council's cabinet member for finance, acknowledged the gravity of the financial situation by stating, 'We fully recognise the seriousness of the projected overspend.' Despite efforts to curb expenses, social care and temporary accommodation costs have ballooned, forcing the council to consider obtaining a £32.5 million loan if they cannot balance their financial records by year-end.
Council leader Ray Morgon expressed his concern regarding the ongoing funding issues, describing the local government funding framework as 'a broken system,' highlighting the council's ongoing efforts to lobby central government for support amid growing service demand and considerable overspending.
The council is facing unprecedented pressures in children's services, as the rising number of children in care and those with disabilities has outstripped budget forecasts, prompting the council to take decisive action following an 'inadequate' rating from Ofsted, which has further strained their finances.
As a result of increased living costs and changing demographics, Havering's authority is anticipating a £6.8 million overspend on children's services alone, alongside additional £2.3 million overspend on social care due to a rise in supported living service demand.
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