Andrew Rosindell M.P. received a letter today from Simon Hoare M.P., Minister for Local Government, on new capitalisation support for the London Borough of Havering, which comes a week after Andrew raised the pressing issue of the council's financial strain on the floor of the House of Commons.
This support comes in the form of capitalisation directions, a measure applied under specific and exceptional circumstances, allowing the council to manage revenue costs through capital resources. It provides Havering Council with the means to navigate budget pressures over time, potentially through the sale of council-held assets.
The government has agreed to provide in-principle capitalisation support as follows:
- £21.2 million in the financial year 2023-24
- £32.5 million in the financial year 2024-25
It is important to note that this approval is provisional and subject to certain conditions. The Council must undergo an independent external assurance review and produce an improvement and transformation plan before a final agreement is reached. These conditions aim to ensure accountability and effective utilisation of the support provided.
Andrew has expressed his gratitude to Simon Hoare M.P. and the Department for their prompt attention to Havering's financial challenges. Andrew's office will continue working closely with the Council as it progresses towards financial sustainability.
A copy of the letter can be found below.
