Haringey Council is facing significant financial strain as core funding from the government has decreased by £143 million since 2010. At the same time, the number of residents claiming Universal Credit has risen, according to a report presented at the Overview and Scrutiny Committee meeting on Tuesday, 22 July 2025. The report also stated that meeting statutory requirements with the current level of Government funding is becoming increasingly difficult.
The report, which detailed the draft 2026/27 budget and the 2026-31 Medium Term Financial Strategy (MTFS), highlighted the pressures facing the borough as it strives to set a balanced budget. The Draft 2026-27 Budget and 2026-2031 Medium Term Financial Strategy Report also indicated that Adult Social Care, Children's Social Care, and temporary accommodation are the services most likely to be affected by budget pressures.
According to the report pack, 25% of Haringey residents aged 16 to 65 were claiming Universal Credit in May 2025, underscoring the economic challenges faced by many in the community. The council's core grant funding from the government is around £143 million less in real terms than it was in 2010/11, placing significant strain on its ability to deliver services.
To address the funding gap, the council is exploring efficiencies, commercial opportunities to increase income generated, and a focus on prevention to avoid the continued high spend in some areas across the medium term.
The report pack set out three scenarios for council tax increases: no increase, a 1.99% increase, and a 4.99% increase. It noted that each 1% increase in council tax generates approximately £1.4 million in additional income. The consequences of these scenarios on residents, particularly those on low incomes, are not detailed in the provided meeting information.
In response to the financial pressures, the council has implemented emergency response arrangements, including a Financial Response and Recovery Plan, to reduce reliance on Exceptional Financial Support (EFS) in the future. Specific measures included in the plan are not detailed in the Public reports pack, but the report indicates that the plan aims to reduce reliance on Exceptional Financial Support (EFS). The General Fund reserve was maintained at £15.2 million, with £1.1 million in the strategic budget planning reserve.
The meeting also included a discussion of the council's main income sources, including government funding, council tax, business rates, and fees and charges, as well as the approach to managing spending pressures and identifying budget reductions.
The Overview and Scrutiny Committee is scheduled to meet again on 18th September 2025, and will include a Finance and Performance update for Quarter 1.
