The announcement sets out how the extra money announced by government in the Budget is being allocated to each local authority.
Government announced its intention to allocate this additional money based on the needs of the population. As a result Haringey will see its funding increase by an extra £16m next year. This is critical given the funding pressures being faced by Haringey in common with other local authorities.
The Council has been working hard to manage rising costs in this financial year alongside developing a balanced budget for 2025/26. However, a decade of austerity, rising costs and rising need are making this increasingly difficult. Efforts to reduce costs and identify additional savings continue. Haringey is currently consulting on more than £18m of savings to be implemented next year as part of tackling a budget gap which has grown to more than £50m.
The additional resources allocated by government does not close the budget gap completely. Efforts to reduce costs and identify additional savings continue. As part of contingency planning, in common with a growing number of other councils, Haringey has made an application to the Ministry for Housing, Communities and Local Government for Exceptional Financial Support to be made available if it is required during 2025/26.
The financial difficulties for many councils are as a result of a number of different factors including years of government under-funding since 2010/11. Haringey Council receives around £143m a year less in real terms in core government grants than it did in 2011. Haringey’s population has continued to increase, including a 24% rise in the number of residents over 65 yrs. This is impacting councils across the capital and London Councils has said that boroughs finances are ‘stuck in survival mode’ next year due to years of structural underfunding.
Despite the difficult financial challenges the Council is wholly committed to delivering services that residents rely on.
The Leader of Haringey Council, Cllr Peray Ahmet, said:
“We welcome the additional funding that the government will provide Haringey next year including extra money to tackle homelessness – one of the biggest financial challenges. But the government was never going to be able to reverse a decade of austerity in one Budget and this new money still leaves us with a mountain to climb.
“Year on year we have worked hard to be efficient and find savings. All the time continuing to deliver the services that matter to our residents. However rising costs and demand in adult and children’s social care, and the impact of the housing crisis, are becoming overwhelming.
“We will continue to work hard to balance our budget but we want to have ESF as a potential back-stop – as part of responsible budget planning - in order to ensure we can maintain vital services for our residents.
“Haringey urgently needs a fair funding system for the long-term which recognises the needs of local populations and provides adequate resources to meet all the responsibilities that we have. We warmly welcome the government’s commitment to bringing forward a new funding system that does that and we stand ready to work with them on developing this.”
