Leaders of Haringey and Barnet have today (10 June 2025) written to the Chancellor and Deputy Prime Minister ahead of the spending review to make the case for fairer funding after revealing they receive 15 per cent less per resident than the England average.
Despite generating year-on-year efficiency savings, both had to apply for Exceptional Financial Support as demand for services they deliver has far outstripped the funding received.
The outer London boroughs set out a ‘roadmap to financial sustainability’ including addressing funding shortfalls over the lifetime of the multi-year settlement and cheaper borrowing from the Treasury after 15 years of austerity by the previous government.
For funding reform to be fair, limited resources must be aimed at areas of unavoidable demand and costs and the funding formula rebalanced to target investment at prevention.
Haringey Council Leader Cllr Peray Ahmet said:
“Along with Barnet, we are a well-run council that deliver services our residents rely on but are extremely concerned about the unsustainable financial pressures we face.
“Haringey’s funding from the government is around £143m less in real terms than it was in 2010 despite spiralling costs and demand for services, particularly adult social care, temporary accommodation and children’s services.
“We know the current government is picking up the pieces from 15-years of austerity-driven cuts and appreciate the additional support they are providing for this financial year.
“Together, we are now calling for a fairer funding system that both protects critical services and enables us to invest in prevention so we can keep costs down and meet the needs of all our communities.”
Barnet Council Leader Cllr Barry Rawlings said:
“The Government has a lot on its plate and have already started to address the challenges local government faces, but it needs to radically overhaul the way councils are funded.
“Barnet is a big borough with higher levels of need than many other councils, but we receive 20% lower funding per person than the England average. That can’t continue.
“Funding should follow what’s driving demand - like adult social care and housing costs - and councils like ours should not be penalised for putting funding into prevention.”
The letter highlights some of the pressures each council is facing including:
Adult social care: Working age disabled adults are the most significant social care cost. Barnet supports the highest number of working age adults with learning disabilities in London, and in North London, Haringey are the next highest. The funding formula must pay greater attention to this group.
Homelessness and deprivation: Haringey’s temporary accommodation net costs increased by 72% or £8m from 2023/24 to 2024/25. Barnet has almost 3,000 households in temporary accommodation, the 6th lowest social housing stock in London and homeless applications have almost doubled.
With a number of other key areas needing huge investment, more councils across the country will be at risk of needing EFS if they do not receive adequate funding.
The letter calls for a ‘total place approach’ so the funding received reflects the cost pressures and demand for services.
Haringey and Barnet want to work with the government as partners to get to a sustainable position and contribute to their mission for fairer funding.
