Issue - meetings

Report of the Director for Finance. Introduced by the Cabinet Member for Finance and Corporate Services.

The main purpose of this report is to specifically update on the budget preparations for 2025/26 and with a focus on the General Fund. Further updates on the Housing Revenue Account and Dedicated Schools Budget will be presented to Cabinet in December 2024.

It sets out the latest information and based on the most up to date assumptions that underpin the budget and sets out the details of the draft revenue and capital proposals for balancing the budget and Capital Programme for 2025/26. Proposed budget reductions are being launched for consultation and scrutiny. The feedback from the consultation will be considered in developing the final draft budget that will be presented to Cabinet in February 2025.  

The Cabinet Member for Finance and Corporate Services introduced the report which updated the Cabinet on the budget preparations for 2025/26 with a focus on the General Fund. Further updates on the Housing Revenue Account and Dedicated Schools Budget would be presented to Cabinet in December 2024.The report further set out:

-           The latest financial information and was based on the most up to date assumptions that underpinned the budget,

-           Details of the draft revenue and capital proposals for balancing the budget and capital programme for 2025/26.

-           Proposed budget reductions being launched for consultation and scrutiny.

The feedback from the consultation would be considered in the final draft budget, along with further proposals put forward in December that would be scrutinised and be presented to Cabinet in February 2025 as a final budget package. 

The Cabinet Member continued to highlight the underpinning objectives of budget and the medium-term financial strategy, which was a fairer and greener borough. She further outlined the local priorities being worked to, which included: building new Council homes, helping people into work, fixing roads and pavements, and planting more trees.

The Cabinet Member also expressed that within these priorities the Council were working in a stark economic backdrop as a result of years of reduced public sector funding, and rapidly increasing cost for services. This was illustrated by sharp cost rise of temporary accommodation which was up 68% across London. The cost of Adult’s Social Care in Haringey was up 10%. At the same time, Haringey’s core government funding was £143m a year less in real terms than it was in 2010.

Further issues highlighted were:

-           Significant changes in the demographic of the borough including increase in the number of older people and this coupled with an out-of-date government funding formula which designated the borough as an outer London borough meant less funding to respond to the borough’s needs. The Council would be working with fellow boroughs to press for change in this area and seek rightful resource to rebuild public services and get the growth needed

-           This was the first step in producing a balanced budget and there would need to be further proposals to bridge identified budget gap of £32m for 2025/25 financial year.

-           This current budget was put forward for resident, partner and scrutiny consultation.

In response to questions from Cllr Hakata and Cllr Connor, the following information was noted:

-           Regarding clarification, to aid public understanding, about the reserves position, it was noted that this was low in comparison to other boroughs. Some of the reserves were earmarked for spend on schools and insurance purposes. Those reserves not listed as allocated were needed for any unforeseen issues. This message aligned with the quarter one budget report, considered in September by Cabinet, which had also reiterated that the levels of reserves were not sustainable and needed to increase in value over the coming years.

-           Regarding the £32million budget gap and potential for writing to the government to  ...  view the full minutes text for item 57