Enfield Council is considering £15.4 million in savings amid uncertainty over future funding, as revealed in a recent Cabinet meeting. The proposed savings are part of the Medium Term Financial Plan (MTFP) Update 2026/27 to 2030/31.
The Cabinet agreed in principle to the savings targets for 2026/27, which include £10.5m from service redesign, efficiencies, and demand management, and £4.9m from income generation. Authority has been delegated to relevant directors to make decisions to achieve these targets, including substituting proposals subject to consultation with the relevant Cabinet Member.
The report highlighted the financial challenges faced by local government, including sustained austerity, rising costs, and demand pressures in services such as children's social care, adult social care, homelessness, and home-to-school transport for children with SEND. To mitigate rising costs and demand in social care, the council is considering demand management, contract reviews, workforce planning, a placement sufficiency strategy, care leaver support, and cost control panels. For homelessness, prevention and early intervention activity, a national placement policy, and a long lease program are being considered, according to the Public Reports Pack.
The Cabinet noted the uncertainty surrounding funding for 2026/27 due to Fair Funding reforms, with the outcome expected in the provisional Local Government Financial settlement in mid-December 2025. The report considered two scenarios: a 'favourable' and a 'low' Fair Funding settlement. The key difference between these scenarios, detailed in the Public Reports Pack, is the budget gap: the 'favourable' scenario results in a balanced budget for 2026/27, while the 'low' scenario creates a budget gap of up to £18m. If the 'low' funding scenario occurs, the council will work to find further savings and income proposals which will be presented in the February budget report. The Council is also considering an application for Exceptional Financial Support (EFS) to use its own capital receipts, but only after all other options are exhausted or as a risk mitigation measure.
The decision on the Medium Term Financial Plan Update was made subject to call-in. In local government, a 'call-in' refers to the ability of non-executive councillors to request further review of a decision made by the executive (cabinet) before it is implemented. This provides an opportunity for scrutiny and potential reconsideration of the decision.
