Issue - meetings

2020/21 Finance Update Quarter 1

Meeting: 15/09/2020 - Cabinet (Item 287)

287 2020/21 Finance Update Quarter 1 pdf icon PDF 1 MB

[Report of the Director of Finance. To be introduced by the Cabinet Member for Finance and Strategic Regeneration.]


This will report will provide an update on the Quarter 1 budget monitoring and will seek approval for any budget changes required to respond to the changing financial scenario and the delivery of the MTFS.


The Cabinet Member for Finance and Strategic Regeneration introduced the report which covered the Council’s financial position at Quarter 1 (Period 3) of the 2020/21 financial year, include General Fund Revenue, Capital, Housing Revenue Account and Dedicated Schools Grant budgets. The Cabinet Member drew the Cabinet’s attention particularly to paragraphs 1.3, 1.4, 2.2, 4.1, 5.1, 6.11, 7, 9 and 10. He added that it was critical to maintain strong financial management in the current economic climate and pandemic.


The Cabinet Member highlighted the continued and increasing pressure that the Council were facing from underfunding of the High Needs Block of the DSG since the Government’s expansion of the age for Education, Health and Care Plan (EHCP) eligibility. The Council, like many other authorities across the country, had been left in a position where, despite best efforts, were unable to meet the needs of these young people within the budget that had been allocated. The Cabinet Member underlined that the additional funds provided for 2020/21 to date in no way went far enough and do not provide the sustainable solution that these young people and their families needed as was evidenced by the forecast £4.5m overspend included in the report.


The outcome of the Government’s SEND review was still waiting publication and in the interim the Cabinet Member emphasised the need for the Council to continue to vocally lobby for additional resources.


  • In response to a question from Cllr Ogiehor, there were ongoing risks in relation to the money spent at the start of the Covid-19 pandemic. This spending was in accordance with central government directions and further spending was expected. So far, the Council had only received in the region of £18m but were forecasting to have a greater net spend impact resulting from the pandemic than the grant allocated. There was growing concern about the risk of not receiving full reimbursement and the effect this would have on the Council’s finances if it had to ameliorate this, and it continued to hope to receive the reimbursement. 



  • Councillor Ogiehor spoke about the conclusion of a 4 year legal challenge in which carers working for a provider in Haringey had recently been awardedbackdated earnings for not receiving the minimum wage. In response to queries about: the financial risk to the Council as a result of care workers of a council contractor paying them below the minimum wage, having assurance on care contract management  arrangements and auditing care  contracts  to ensure no similar issues occurred in the future , the Cabinet Member advised that he would discuss this with the relevant Cabinet Member  and respond to Cllr Ogiehor in due course.


  • The Cabinet Member also advised that more recently, there were provisions made by the Council , during Covid 19, for home care workers, working for providers in Haringey, to receive an uplift equivalent to the London Living wage  and the requirement to pay London Living Wage was also added to the new DPS home care contracts agreed at Cabinet  ...  view the full minutes text for item 287