*Updated 21/10/25* Havering could face further financial strain under new Government plans to shift council funding from the South to the North of England, according to Hornchurch and Upminster MP, Julia Lopez.
In a letter sent today to the Deputy Prime Minister and Secretary of State for Housing, Communities and Local Government, Angela Rayner MP, Mrs Lopez raised concerns that proposals to redistribute local authority funding risk disadvantaging outer London boroughs like Havering even more than the status quo.
According to reports in The Times, the Government is preparing to overhaul the formula by which Whitehall allocates money to local councils, with a view to directing more resources to areas in the North and Midlands.
While the changes aim to address inequality, there are growing fears that boroughs in London and the Southeast will see reductions in their grant funding at a time when many, including Havering, are already struggling to balance the books.
Julia has long campaigned for a fairer funding deal for Havering, arguing that the current formula is outdated and fails to reflect rising demand for services caused by a growing population of both older residents and young families.
Julia said:
“Havering has been overlooked for too long. Despite some of the highest council tax bills in London, our borough is under huge pressure to deliver services to a population that is ageing and growing rapidly.
“The suggestion that Havering could now lose even more funding, while ministers prioritise redistribution elsewhere, is deeply unfair and fails to recognise the financial challenges we already face.
“Just the other week I pressed the government minister on this issue and will continue to push the Deputy Prime Minister to ensure that outer London boroughs are not left behind.”
In her letter to the Deputy Prime Minister, Julia asked for assurances that councils like Havering will not be penalised under the new arrangements.
She also reiterated her calls for a proper review of local needs data, warning that without it, outer London councils risk being squeezed further, forced to raise council tax or cut back essential services.
Mrs Lopez said she will continue to work closely with Havering Council and other MPs to make the case for a fair funding model that recognises the pressures on outer London and supports sustainable local services.
