Harrow Council is grappling with a significant financial challenge, aiming to achieve £9 million in savings over the next three years amidst escalating costs and increasing demand for services. The council's financial position, while stronger than many London boroughs, faces considerable pressures, particularly in adult social care and temporary accommodation.
During a question and answer session with the Overview and Scrutiny Committee, detailed in the Public reports pack Tuesday 13-Jan-2026 18.30 Overview and Scrutiny Committee, council leaders acknowledged a budget gap that requires bridging. Harrow Council's financial settlement is described as positive, with leaders noting that Lots and lots of London councils, including two of our neighbours who are in emergency financial support or asking for emergency financial support. We are not there and we're nowhere near there.
In contrast, other boroughs are facing much larger deficits, with some discussing 40 million gaps, 50 million gaps, or getting 70, 80 million of emergency financial support.
The primary drivers of the rising costs contributing to the budget gap are identified as housing and adult services. A substantial portion of the projected growth within the Medium Term Financial Strategy, amounting to £45 million, is attributed to these areas. Specifically, complex demands arising from the Children and Young Adults with Disabilities Service are highlighted as a significant factor.
To address these financial pressures, the council plans to contain growth in demand within adult and children's services. Beyond this, specific measures for adult social care include the potential purchase of care homes within the borough. This strategy aims to curtail market forces and keep costs lower for complex cases and complex individuals and families.
Furthermore, the council is seeking more cost-effective long-term arrangements for temporary accommodation, moving away from expensive nightly spot rates. This shift is expected to lead to more long-term deals done that gets a lower rate, and also more stability and hopefully better accommodation for the people who are needing temporary accommodation.
The financial year 2027/2028 is anticipated to be the most challenging. The council's strategy for this period involves achieving the £9 million saving target over three years while simultaneously enhancing services. Leaders view this as a doable position, which should enhance our services and outcomes that we're delivering for residents, as well as create a sustainable position financially for the organisation.
While the primary focus is on expenditure reduction and demand management, the council is also exploring opportunities for revenue generation. For instance, the new council chamber is projected to break even within three to four years, with initial interest from events such as weddings expected to bring income.
