Haringey set to get extra £75m over three years after government funding review

But council leader Peray Ahmet has warned more help is still needed to fix the borough’s finances, reports Grace Howarth, Local Democracy Reporter

Haringey Council leader Peray Ahmet (inset left) and Secretary of State Steve Reed (right)

Haringey Council will enjoy a £75.6million financial boost over the next three years thanks to a government funding review.

The 23% increase in the borough’s ‘core spending power’ represents the joint 14th-highest percentage increase in London.

The Labour government’s much-anticipated Fair Funding Review has sought to rebalance local government funding based on key factors, including deprivation levels, with many outer London boroughs said to be suffering under the old, outdated funding formulas used to divvy up council cash from Whitehall.

Haringey Council leader Peray Ahmet welcomed the £75m increase for her borough, saying the government had recognised London’s housing costs and “more accurately” reflected local “high deprivation levels”.

However, Cllr Ahmet warned more was still needed to solve the borough’s financial difficulties. She said: “The government was never going to be able to reverse over a decade of austerity overnight. Rapidly increasing demand and costs for key services alongside substantially lower funding per person than the national average means we – in common with councils across England – are still facing extreme budget pressures.

“We will carry on making the case to the government for the long-term reform in areas like social care and housing that is so desperately needed so that we can continue to deliver for the residents and businesses in Haringey.”

As of this year Haringey Council had been operating with around £143m less in core government funding (in real terms) than it did in 2010 – a 55% drop.

In November, the council predicted an “at least £57m” shortfall for its 2026/27 budget. The government granted Haringey £37m in exceptional financial support (EFS) for this current financial year, but the borough has confirmed it will again, despite the changes, require EFS for 2026/27.

Announcing the Local Government Funding Settlement yesterday (Wednesday 17th) Secretary of State for Housing, Communities and Local Government Steve Reed said: “This is a chance to turn the page on a decade of cuts, and for local leaders to invest in getting back what has been lost – to bring back libraries, youth services, clean streets, and community hubs.

“We’re making sure every community has the funding they need to succeed.”

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