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Independent review

London Borough of Havering Council: External assurance review

Completed
the Chartered Institute of Public Finance and Accountancy · Published 13 March 2025 · Commissioned by MHCLG Employment & Work

External assurance review of London Borough of Havering Council led by the Chartered Institute of Public Finance and Accountancy (CIPFA) undertaken in August 2024.

Government Response

MHCLG decides to grant the London Borough of Havering Exceptional Financial Support, issuing a capitalisation direction under sections 16(2)(b) and 20 of the Local Government Act 2003 approving up to £30.4m for 2024-25. No statutory Best Value intervention is imposed; the council does not appear on MHCLG's intervention list.

21 August 2025

Recommendations

Recommendation 1
London Borough of Havering
The council should undertake a formal review against the CIPFA financial management code.
Recommendation 2
London Borough of Havering
That the council increases its investment in preventive services via invest to save approaches with sound business cases whose progress is rigorously monitored
Recommendation 3
London Borough of Havering
That the May 2024 Starting Well Improvement Plan, remains subject to strong monitoring and governance arrangements as a key priority for the council
Recommendation 4
London Borough of Havering
Develop market position statement, supported housing strategies, and new approaches to commissioning. All are in progress.
Recommendation 5
London Borough of Havering
During the course of our review it was apparent this risk has materialised. The council will need to enter into a dialogue with Government into a way forward on its future funding.
Recommendation 6
London Borough of Havering
It is recommended that the council undertake a full review of the capital programme including schemes undertaken by its companies and partnerships with a view to seeing if schemes can be delayed or withdrawn as a matter of urgency.
Recommendation 7
London Borough of Havering
The council should consider the merits of setting up such a board
Recommendation 8
London Borough of Havering
The council should review and consider whether this arrangement is appropriate
Recommendation 9
London Borough of Havering
The MLH Business Plan should be reviewed annually, and this should be included in the shareholder agreement
Recommendation 10
London Borough of Havering
The council should review the content of financial information in reports so that actual costs and scheme or service budgets are directly referred
Recommendation 11
London Borough of Havering
The council should ensure that the necessary resources are secured to deliver the required transformation agenda
Recommendation 12
London Borough of Havering
The council should review its contract procurement rules, roll out training and create a forum to share best practice
No recommendations with this response.