Council considers £12m of cuts to avoid bankruptcy

A London council has unveiled measures to address a £31m budget gap in the coming year to prevent bankruptcy.

Some of the actions will directly impact residents such as parking charges and reducing the number of libraries in the area.

Other more complex financial decisions could impact the council’s financial resilience, council documents show.

Leader of Havering London Borough Council Ray Morgon has previously said Havering Council could go bankrupt in as soon as six months.

The council has vowed to do “everything it can” to avoid issuing a Section 114 notice, commonly known as bankruptcy for a local authority.

The plans include, Cutting the number of libraries to save £300,000 by focusing on areas of “greatest need”, Stop funding Christmas events by seeking sponsorship for festivities to save £133,000 and  Paying families money to help house their relatives if they are at risk of homelessness and save £55,000 so it doesn’t have to pay out for temporary accommodation such as B&Bs.

The council is also considering cutting its highways budget by £1.5m and increasing its council car park charges by 40% and bringing in charges for Sunday parking.

The authority has also suggested ending the discount for residents challenging parking fines which would save £350,000.