Haringey Mulls Council Tax Hike Up to 4.99% Amid Financial Pressures

Haringey residents could see their council tax bills rise by up to 4.99% as the council grapples with significant financial pressures driven by increasing demand for adult social care, children's social care, and temporary accommodation.

The potential increase was discussed at a meeting of the Overview and Scrutiny Committee on Tuesday, 22 July 2025, as part of a review of the draft 2026/27 budget and the 2026-31 Medium Term Financial Strategy (MTFS).

The council faces difficult decisions as it seeks to balance its books in the face of rising demand for services and reductions in government funding. According to the Draft 2026-27 Budget and 2026-2031 Medium Term Financial Strategy Report core grant funding from the government is around £143 million less in real terms than it was in 2010/11. The report also notes that 25% of residents aged 16 to 65 were claiming Universal Credit in Haringey in May 2025.

To address the £143 million funding gap, the council is also considering efficiencies, commercial opportunities to increase income, and a focus on prevention to avoid continued high spending.

The report sets out three scenarios for council tax increases: no increase, a 1.99% increase, and a 4.99% increase. It notes that each 1% increase in council tax generates approximately £1.4 million in additional income. The financial impact of 1.99% and 4.99% Council Tax increases across the MTFS period is exemplified in the table below:

	2026/27	2027/28	2028/29	2029/30	2030/31
Scenario	£'000	£'000	£'000	£'000	£'000
Income from 1.99%
increase	149,617	154,071	158,660	161,797	166,667
Income from 4.99%
increase	153,971	163,174	172,933	181,691	192,664
Increase in income	4,354	9,102	14,273	19,893	25,997

The council relies on a variety of funding sources, including government grants, council tax, and fees and charges.

The Council will set a budget for 2026/27, a medium-term financial strategy to 2030/31 and capital programme to 2030/31 in March 2026. A consultation will be launched, and feedback from the consultation will be considered in developing the final draft budget that will be presented to Cabinet in February 2026.