We continue to face unprecedented pressures beyond our control, and this is reflected in the budget forecast of a £20m deficit for the financial year 2024/25.
Local authorities across the country are facing huge financial challenges, with London Councils predicting the capital’s boroughs face a collective £700m shortfall.
Unfortunately, Haringey, like many boroughs, has been underfunded by government for over a decade and a fair funding review is long overdue.
For historic reasons, Haringey is considered an outer London borough for funding purposes but has all the pressures of an inner London borough with the additional burden of lower business rates receipts and an average of Band C for council tax.
Almost £14m of the provisional deficit is caused by an increase in the demand and costs of Adult and Children’s social care. There is a further £4.83m pressure on the housing demand budget, primarily due to the cost of temporary accommodation for homeless households.
We put substantial funding into our 2024-25 budget to deal with the anticipated overspend and will continue to work hard to mitigate the strain on our resources.
An additional £25.4m was invested into our housing, adults’ and children’s services, as well as £8.7m to cope with inflationary pressures.
We are doing everything in our power to reduce the deficit. We will maintain our focus on good financial management and continue to be open with our residents about the challenges.
