Fresh warning over council finances amid nervous wait for government reforms

Haringey Council finance boss admits Westminster’s changes to local government finance could be “positive or negative” for the borough, reports Grace Howarth, Local Democracy Reporter

George Meehan House and (inset) Dana Carlin — George Meehan House and (inset) cabinet member for finance Dana Carlin

Haringey Council’s finance boss has warned the cost of providing services continues to rise amid a forecasted “worst case scenario” budget gap of £62million for 2026/27.

Cabinet member for finance Dana Carlin, referring to a new council report, said the shortfall was down to continued pressure on high-demand services such as adult social care, children’s social care and temporary accommodation.

This comes on top of a series of recent financial challenges caused by rising costs and reduced funding, which resulted in the council applying to the government last winter for £37m in ‘exceptional financial support’ (EFS) to help balance its 2025/26 budget.

Speaking at a cabinet meeting yesterday (Tuesday 15th), Cllr Carlin said: “The high level of need, the increasing number of those over 65, and the large number of residents in insecure private sector housing, over 50% in some wards, continues to drive the increasing cost of providing services our residents rely on.”

Haringey’s director of finance, Taryn Eves, added the council usually brought this report to cabinet in autumn but to “set the foundation for budget setting” the council was bringing it forward earlier.

Liberal Democrat councillor Luke Cawley-Harrison, leader of the opposition group, said the latest consultation on the government funding formula, which is being reviewed, could mean Haringey “could lose government funding over the next three years”.

Taryn said: “That in itself is a consultation, we don’t know what the outcome is yet, we’ll absolutely respond, we’ll make the case for Haringey and lobby Haringey’s position.”

She added: “We just don’t know whether [the result] will be positive, negative, or just stay the same.”

Meanwhile, Cllr Cawley-Harrison pointed out that in addition to the “worst case scenario” of a £62m gap, the council had projected for 2026/27 a £44m budget gap as a “current assumption” and a £39m “best case scenario”.

Taryn said the £44m gap projection was based on a “current set of assumptions” including a “1.99% council tax increase” while the best case was based on the fairer funding spending review result.

She said: “Any one of those assumptions can change and what we’ve tried to do is give a feel of how much the change would be if any of those assumptions are incorrect.

“Let’s say the worst case presented here is £62m, that is a new budget gap and that does assume we deal with the £37m that we are assumed to use in 2025/26, that is a one-off.”

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