But the leader of the opposition Lib Dems has called the request a “humiliation” for Haringey, reports Grace Howarth, Local Democracy Reporter

Haringey Council’s leader says she’s confident exceptional financial support will be granted by Westminster amid “untold pressure on councils” – but opposition councillors have described it as a “preventable humiliation”.

Council leader Peray Ahmet issued a statement this week in an attempt to assure residents that despite the “funding emergency” Haringey remained committed to “protecting and delivering services which matter most to residents”.

Cllr Ahmet said: “Ever-growing demands, increased population, rising costs and more than a decade of government austerity has put untold pressure on councils across the country including Haringey.   

“We are a borough with outer London levels of funding but inner London levels of need.  In recent years the reality has been that we have less money to serve more people who require more services which have become more expensive to provide. As a result of this we are facing a funding emergency. ”

Back in November, the council said it faced a projected £32million budget gap for 2025/26. In December, it received £16m in additional funding from government for the year ahead.

But “ever growing demands” in-year and onwards mean the council predicts it will require up to £37m to cover day-to-day spending in the coming months.

Applying for exceptional financial support (EFS) is a mechanism open to councils facing financial pressures considered unmanageable. Alternatively, they may face effective bankruptcy via a Section 114 notice.

Haringey’s Liberal Democrat group leader Luke Cawley-Harrison said: “Whilst all councils are facing tough financial times after a decade of chaos under the previous Tory government, only those councils guilty of chronic financial mismanagement have been forced to plead to the government for a bailout.”

On its future position and savings, Cllr Ahmet said: “I am confident that the government will approve this support, and we will continue to reduce pressures on the most in-demand areas and protect our frontline services.  

“We will also be bringing forward further savings proposals during the year to bridge the budget gap further in the light of independent reviews undertaken across all of our services and reduce the amount we finally need to draw down.”

Cllr Cawley-Harrison claimed that “unprecedented borrowing”, “failing to properly manage contracts or data” and using “dwindling reserves” to make-up shortfalls contributed to the council’s finanical position.

He added: “This latest development is akin to a pay-day loan on an unprecedented scale, with Haringey now facing being trapped in a vicious cycle of borrowing and even greater repayments, and it is residents who will ultimately suffer.”

The council leader put the shortfalls down to 14 years of austerity and said she’d continue to lobby the government for a fairer funding system.

This, Cllr Ahmet said, would ensure the needs of local populations were better recognised and adequate resources were provided to the council in order for them to meet “all the responsibilities we have”.

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