Harrow Council is currently underspent by £1.5 million overall, but residents may see council tax rise by 5% each year for the next three years. While the specific services or departments contributing to this underspend are not detailed, the council asserts it has more control of its finances compared to other boroughs.
At a recent Overview and Scrutiny Committee meeting, Councillor Paul Osborn, Leader of the Council, said that the government expects councils to raise council tax by 5% each year for the next three years, and may question councils that do not do so. He stated, For the next three years, the government is expecting us and all councils to put council tax up by 5% a year. And if you don't do that, they'll be asking questions about, well, do you really need the money that we're giving you?
Mr. Osborn reported that the council is currently underspent, in contrast to many other London boroughs facing significant overspends, with some looking at £20-30 million overspends and substantial use of reserves. He noted that some boroughs are more heavily reliant on central government funding, making them more vulnerable to financial challenges. Mr. Osborn stated, That compares very distinctly with a lot of other London boroughs and a lot of our neighbouring boroughs where they're looking at £20, £30 million overspend and a substantial use of reserves.
Alex Skinner, Managing Director of the Council, added that the council is unsure how the comprehensive spending review will affect it, but that there is an assumption that money would probably leave London and go elsewhere in the country. He noted that the vast majority of the council's money already comes from council tax. While other primary sources of funding are not explicitly detailed, the discussion implies that central government funding is also a source, albeit less significant for Harrow compared to some other boroughs. Mr. Skinner stated, We are not that clear how the comprehensive spending review will impact us at this moment in time. We are learning as we go through day by day around that. There is an assumption that money would probably leave London and go elsewhere in the country.
Mr. Osborn added that Harrow is expected to be broadly unchanged, while inner London boroughs are expected to be hit hard and outer London boroughs like Enfield and Hillingdon are expected to gain.
Despite potential tax increases, Mr. Osborn also highlighted several improvements to public services, including increased street cleaning, more frequent park collections, and a significant increase in pothole repairs. He stated that the council fixed 7,000 potholes in the last financial year, compared to 800 in 2021-22. The council is also resurfacing roads throughout the borough, increasing spending from £6-7 million a year to £14-15 million a year. The council will continue to do that for the next two years. The long-term plan beyond these projects is not detailed in the meeting information.
