Local councils will struggle to deliver the services residents need

10 October 2022

4 Min Read

10 October 2022

Anna Abela, councillor for the Harringay ward, discusses cost of living, the mini-budget and what this means for local councils
By Anna Abela

With over a third of Haringey residents already living in poverty – the fifth highest rate across all London boroughs – the cost-of-living crisis will have devastating consequences for our community. The ward I was elected to represent last May, Harringay, is no exception.

At my surgeries, I meet residents who are worried about how they will pay their rising energy bills and whether they can continue to live close to their support networks in North London as rents soar. With fresh food prices rising by over 10% in July (the highest increase since the global financial crisis brought the economy to the brink of collapse) the weekly grocery shop has become a source of anxiety for many. Seasoned colleagues who have served multiple terms in Haringey Council tell me they had never seen so many residents reaching out to their councillors for support before this crisis hit.

I am hugely encouraged by the determination of Haringey Council’s cabinet to alleviate the impact of this crisis. In September, all councillors were briefed on the package of support measures already available to residents, so that we can spread the word within our communities.

These include a Haringey Support Fund to help low income residents pay for essential items and unexpected costs, and housing payments for residents facing financial hardship. A one-stop-shop helpline – easily reachable on 02084894431 – has been set up so residents can get free financial advice, including how to claim benefits they may be unaware of and access employment support.

But despite our resolve to support residents through this crisis, local councils face the perfect storm. As demand for their services rises dramatically, so too has the cost of providing those services. Since joining Haringey Council’s corporate committee, which scrutinises the administration of the council’s finances, I have become painfully aware of the financial challenges that rising inflation poses to our council.

The Local Government Association – a cross-party body that represents over 360 local councils in England and Wales – sounded the alarm in June. When local councils set their budgets for this year, average inflation was about 3%, but this has now risen to just under 10%. The association estimates this will leave councils across the country with an estimated net funding gap of £1.4billion this year, rising to £4.5billion by 2024. Put simply, rising inflation means local councils will struggle to deliver the services residents need at a time when those services are needed more than ever.

Local councils cannot square this circle alone. This is a national challenge that is within the government’s power to address. The government’s last major decision on local council funding was made at a time when inflationary pressures were significantly lower. It should now increase this funding, particularly as, with residents struggling to buy essential groceries, it is simply not fair to ask them to make up this shortfall by increasing council tax rates.

Yet, aside from a paltry sum for energy efficiency projects, there was no mention of emergency funding for local councils in our new Chancellor Kwasi Kwarteng’s first mini-budget last month – amid speculation that he intends to drag his feet on announcing a full budget until next spring. As the first line of support for many residents at the sharp end of this crisis, local councils cannot wait that long.

Anna Abela is a Labour Party councillor in Harringay ward. If you are a resident, you can get in touch on [email protected].

More information about the Haringey Council services available to support residents with the cost of living is available at: haringey.gov.uk/community/here-help-financial-support-residents

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