Agenda and minutes

Please note that this meeting may be filmed or recorded by the Council for live or subsequent broadcast via the Council’s internet site or by anyone attending the meeting using any communication method. Although we ask members of the public recording, filming or reporting on the meeting not to include the public seating areas, members of the public attending the meeting should be aware that we cannot guarantee that they will not be filmed or recorded by others attending the meeting. Members of the public participating in the meeting (e.g. making deputations, asking questions, making oral protests) should be aware that they are likely to be filmed, recorded or reported on. 

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The chair of the meeting has the discretion to terminate or suspend filming or recording, if in his or her opinion continuation of the filming, recording or reporting would disrupt or prejudice the proceedings, infringe the rights of any individual or may lead to the breach of a legal obligation by the Council.

The Chair referred Members present to agenda Item 1 as shown on the agenda in respect of filming at this meeting, and Members noted the information contained therein’.

There were no apologies for absence.

There were no items of urgent business.

There were no declarations of interest.

There were no deputations, petitions, presentations or questions.

To receive and note the minutes of the following Scrutiny Panels and to approve any recommendations contained within:

·         Adults & Health – 19^th September 2024

·         Climate, Community Safety & Environment – 12^th September 2024

·         Children & Young People – 9^th September 2024

·         Housing, Planning & Development – 26^th September 2024 and 5^th November 2024.

To receive and note the minutes of the following Scrutiny Panels and to approve any recommendations contained within:

· Adults & Health – 19th September 2024

· Climate, Community Safety & Environment – 12th September 2024

· Children & Young People – 9th September 2024

· Housing, Planning & Development – 26th September 2024 and 5th November 2024.

RESOLVED

Noted and approved.

To consider the 2024/25 Savings Tracker & 2025-29 Savings Tracker from the 2025/26 draft budget and MTFS papers. This item were deferred from the last meeting.

The Finance Update for Quarter 2 provided a comprehensive overview of the council’s financial position as of the end of September. Taryn Eves, Head of Finance and Councillor Carlin introduced the report for this item. Below are key points in regard to this:

The council was experiencing increasing financial pressures, particularly in adult social care and temporary accommodation. These pressures were consistent with trends observed in other London boroughs and across the country. The projected overspend had risen significantly, with service pressures increasing from £18 million to approximately £29.5 million. Additionally, non-deliverable savings have increased from £2 million to £7.5 million, contributing to the overall budget gap. While adult social care was under significant pressure, children’s services had remained relatively stable, which was a positive aspect of the financial update. The council had implemented initiatives to support residents, such as providing grants to low-income households previously entitled to winter fuel payments.

The capital program had experienced a high level of slippage, meaning that not all planned projects were progressing as expected. The council aimed to improve this situation by avoiding including projects in the capital program that could not be delivered. The report highlighted concerns about the trajectory of financial pressures and the need for careful monitoring. The council was committed to ongoing monthly monitoring of high-risk budgets and would use this information to inform future budget-setting processes. The report indicated a significant budget gap projected for future years, emphasizing the need for strategic planning and potential adjustments to services and spending.

The following was noted in response to questions from the committee:

• The council was conducting monthly monitoring of high-risk budgets and was working to tighten financial controls. There was a focus on accurate forecasting and identifying any potential risks early to mitigate overspending.

• The non-delivery of savings would increase the budget gap on a pound-for-pound basis. The council was actively reviewing savings proposals and was committed to ensuring that any savings that cannot be delivered are accounted for in future budget planning.

• While it was difficult to guarantee absolute accuracy, the council had worked to ensure that the forecasts were based on tangible assumptions and data. The focus was on realistic projections, and the council would continue to monitor the situation closely.

• The council was taking into account various external factors, including inflation and market conditions, which could affect service delivery costs. These factors were included in the financial planning process to ensure that the budget reflects the current economic environment.

• The Audit Committee discussed the challenges related to the council’s historical audits and the need for transparency in financial reporting. There was a disclaimer on previous accounts due to the lack of audits, but the focus is now on ensuring that future audits are completed in a timely manner.

• The council had set aside contingency reserves to manage unexpected financial pressures. Additionally, there were ongoing reviews of spending to identify areas where costs can be reduced without compromising service delivery.

• The council was developing a medium-term financial  ...  view the full minutes text for item 7.

This is a verbal update from the Director of Finance on the Budget, which was deferred from the last meeting.

Jess Crowe discussed the Savings Tracker and digital transformation during the meeting. She explained that the savings related to digital transformation had been reprofiled and allocated to individual directorates to encourage engagement and ownership of the savings targets. Specifically, she mentioned a saving of £145,000 related to the replacement of the Respond system, which is used to manage member inquiries, complaints, and Freedom of Information requests.

She noted that the current Respond system which was used to manage member inquiries, complaints, and Freedom of Information requests was outdated and inefficient. The plan was to replace it with a new system that is not only cheaper but also offers better automation for various processes. She acknowledged that the implementation of this saving had slipped but expressed confidence that it would be delivered in the subsequent financial year, thanks to mitigations being identified in other systems used by her directorate. Overall, she emphasized the importance of a structured approach to digital transformation, which includes developing a roadmap for each directorate to ensure that savings are achievable and that there is accountability for delivering those savings. There would be an all-member briefing organized to discuss the digital transformation and changes within the digital service. This briefing would provide an opportunity for all councillors to ask questions and learn more about the new approach to digital services, including the plans for replacing the Respond system.
The briefing aimed to ensure that members were informed about the digital transformation efforts and the improvements being made to enhance service delivery and efficiency. Jess emphasized the importance of this communication to keep all members updated and engaged in the digital transformation process.

Contracts review –

During the discussion on the contracts review, it was noted that there was a target of £250,000 in savings, but this was marked as a red risk in the savings tracker. Taryn explained that this saving was initially included in the budget without a clear plan for how it would be delivered. As a result, it was determined that the saving would not be achieved this year.

Taryn indicated that the approach taken for this saving was similar to that of the digital transformation savings, where the responsibility for delivering the savings was expected to be passed on to various directorates based on their contract spending. However, since the directorates were already struggling to meet their own savings targets, Taryn decided to look for alternative savings within her own directorate instead.

The discussion highlighted the need for a more structured approach to managing contracts and identifying savings, as well as the importance of ensuring that any savings targets set are realistic and achievable. The red status indicated that the saving was unlikely to be delivered, and Taryn planned to incorporate this shortfall into the overall budget gap for the upcoming year.

Open banking –

The discussion on open banking being marked as a red risk indicated that the projected saving of £300,000 related to open banking was deemed unachievable. Taryn explained that  ...  view the full minutes text for item 8.

To consider the in-year budget monitoring report as at Quarter 2 of 2025/26.

Taryn Eves, Head of Finance provided a comprehensive overview of the financial situation and budget planning for the council. Below is a summary of her update.

Taryn emphasized the importance of the MTFS, which outlines the financial framework for the next five years. The intention is to present this strategy earlier in the year (in July) to set the foundation for the budget-setting process. The Director reported that the budget gap for the upcoming year (2025-26) had increased significantly. Initially projected at £14 million, it was now estimated to be around £50 million due to rising pressures in adult social care, children’s services, and housing. The council was actively working on identifying savings proposals to address the budget gap. A total of £18.8 million in proposals had been put forward for public consultation, which would close on January 5. The feedback from this consultation would be reviewed in January.

She acknowledged that the financial landscape was challenging, with low reserves and significant pressures on services and highlighted that the council’s reserves are currently at low levels, which posed a challenge for financial sustainability. This situation limited the council’s ability to use reserves as a buffer against financial pressures. She mentioned that there were different types of reserves, including committed reserves and risk reserves. Committed reserves were those that had been earmarked for specific purposes, while risk reserves were set aside to manage uncertainties and potential financial risks.

She indicated that there would be a review of the reserves to determine if any of the committed reserves could be utilized to help address the current budget challenges. This review aims to assess whether some of the older reserves, which may no longer be relevant or needed, could be released for use. She stressed the necessity of maintaining a prudent level of reserves to ensure the council can respond to unexpected financial challenges in the future. Exhausting reserves completely would undermine the council’s financial stability and ability to operate effectively.

The conversation about reserves was tied to the broader theme of long-term financial planning. She emphasized that while it might be tempting to use reserves to cover immediate budget gaps, it is crucial to plan for the future and ensure that reserves are available for unforeseen circumstances. The need for careful monitoring and management of budgets was emphasized, particularly in light of the risks associated with delivering the proposed savings.

She mentioned that the government had announced additional funding for local authorities, but it was uncertain how much of this would benefit Haringey specifically. The provisional local government finance settlement was expected to be published soon, which would provide more clarity on funding allocations. She highlighted the importance of long-term planning and the need to address not just the immediate budget gap but also the projected cumulative budget gap of £132 million by 2029-30. This required a focus on sustainable financial management and exploring invest-to-save opportunities.

She expressed a commitment to engaging with stakeholders and ensuring transparency in the budgeting process. This  ...  view the full minutes text for item 9.

There were no new items of urgent business.

20^th January 2025

30^th January 2025 (provisional)

27^th March 2025

The date of the next meeting is 20^th January 2025.