Agenda item

Motion G

Investment of funds held by Haringey Council including with the Local Government Pension Scheme

Proposed by: Cllr Lotte Collett Leader, Independent Socialist Group

Seconded by: Cllr Mary Mason, Independent Socialist Group

This Council notes:

1. Haringey Council appreciates that while there is a general fiduciary duty which applies to both the Council investments and the pension fund there are legal and practical differences between the Councils’ own investments and the status of the pension fund which is owned by and held on behalf of current and prospective recipients. That having been said any review of policy should include not investing in companies which violate standards set by the Council and ensuring the Council is both acting within its moral and ethical duties by using money it holds to the highest standards and using its influence to uphold these principles

2. The standard which should be adhered to and subject such being on advice to being lawful is one of not using investments to gain from the sale of military weapons and/or parts including those used for surveillance and/or torture in wars either condemned by the United Nations, ICHR or the ICC. The standards to include the barring of investment in dangerous or harmful substances, environmentally harmful practices and the denial of human rights.

3. Haringey Council also notes The Economic Activity of Public Bodies (Overseas Matters) Bill 2022-2023 of which Clauses 1 and 2 would forbid public authorities to make procurement or investment decisions based on their own moral or political disapproval of policies or conduct by foreign authorities and Clause 4 forbidding public authorities to make statements about boycott and divestment campaigns and their decisions in this respect, has not been carried forward by the current Government.  Subject always to its fiduciary duties to both the tax payers of Haringey and its pensioners (both current and future) Haringey Council now has the freedom to take human rights and other ethical considerations into account when making financial decisions.

This Council believes that:

1. All forms of racism, including anti-Palestinian racism, antisemitism and Islamophobia have no place in Haringey and we condemn any attacks on Palestinian, Jewish, and Muslim people. Haringey is one of the most diverse boroughs in the UK, and home to Muslim, Jewish and Christian peoples, and those of no faith, many of whom have relatives and friends in the Holy Land.

2. Councils must avoid investing the funds they manage, including the Local Government Pension Scheme, in corporations that facilitate breaches of international law. This includes arms and tech companies producing weapons and military and surveillance technology most recently used by Israel in its attacks on Palestinians, and the banking and investment institutions which finance these arms companies. Council Calls on those undertaking the reviews to seek as far as is lawful and in compliance with its fiduciary duties to seek to comply with this call.

This Council resolves to:

1.     With regards to its own investments and within lawful limits to divest from companies which are in breach of these standards and further recommends the Pension Fund in undertaking its review to also look to take forward these resolutions should they consider after advice that to do so would be lawful and in accordance with their duties to the fund also takes forward these resolutions.

2. Incorporate these standards and review relevant policies, to include divestment and alternative investments.

3. Call on our representatives on all relevant bodies to divest from any funds administered, including Local Government Pension Funds which are at variance with this motion to include companies on the UN’s list of businesses involved in activities in the Occupied Palestinian Territories and deemed complicit in human rights abuses.

Motion H

Fair funding for local government 

Proposer: Cllr Sarah Williams 

Seconder: Cllr Matt White 

This Council notes –  

14 years of austerity and chronic underfunding of public services have devastated local government budgets.  

Haringey’s core government funding has been cut in real terms by £143m, while our statutory responsibilities in areas such as housing, adult social care, children’s services and public health have grown significantly. 

Haringey is one of 30 councils, from across the political spectrum, that have applied for Exceptional Financial Support (EFS), including 6 in London. 

London Councils estimates a collective funding gap of £500m for the financial year 2025/26.  

Several other factors have put additional pressure on Haringey’s finances: 

• Haringey has an ageing population, with a 24% increase in the number of residents over the age of 65 since 2010. 
• Haringey has experienced a sharp increase in the cost of and demand for our services.?Our 2025/26 budget includes an additional: 
  • £31m for adult social care; 
  • £12m for temporary accommodation (an increase of 278%); 
  • £6.5m for children’s social care and SEND. 
  • These services alone account for over 60% of our total budget. 
• Most boroughs average band D for council tax, but Haringey’s average is the lower value band C – which means our revenues are lower. Government funding to local councils does not take full account of this. 
• The classification of inner and outer London boroughs has not been updated since the 1960s. This old analysis says that levels of need and cost are higher in inner London. Haringey is classed as an outer London borough, but we actually share the challenges of inner London. 

Despite these challenges, Haringey continues to deliver exceptional outcomes across many of its services: 

·         98% of our schools are rated ‘Good’ or ‘Outstanding’. 

·         Our SEND services attained the highest possible rating from Ofsted and CQC. 

·         We are delivering an extensive house-building programme; 707 completed and on track to build 3,000 homes by 2031. 

·         The Haringey Support Fund has provided hardship funding to more than 4,000 residents. 

·         We care for 4,000 disabled people and older people and more than 5,000 children. 

·         More than 5,500 pot-holes have been fixed. 

·         Almost 2,000 street trees have been planted. 

Haringey’s March 2025 Budget protects the vast majority of frontline services while delivering significant investment to maintain our excellent local public services, investing -  

·         £1.5m in eight parks across the Borough. 

·         £68m in SEND services. 

·         £35m in our council tax reduction scheme, supporting 23,000 low-income households. 

This Council believes –  

Local councils are living hand to mouth. The number of local councils up and down the country, from across the political spectrum, experiencing financial difficulties is evidence of the deep-rooted issues with the local government funding formula, relying on outdated deprivation data and a flawed allocation formula. 

A fair funding model for local government will deliver preventative benefits and long-term savings at successive Budgets, ensuring local councils can continue delivering vital frontline services, particularly in areas such as mental health, youth services and anti-social behaviour. 

Cuts to local government and public services are a false economy. 14 years of crippling underfunding of vital frontline services, such as the Sure Start programme, has only increased need within communities – and with it demand and costs for local government. 

That Government has made reforming local authority funding a priority. The Local Authority Funding Reform consultation, which Haringey submitted to, as well as statements from Minister Jim McMahon, indicate an intention to support long-neglected local councils. The financial strain on councils such as Haringey mean that this reform must - and it must come urgently.  

This Council resolves to –  

Continue calling on the Government to urgently reform the local government funding landscape to ensure a fair distribution of resources, which more accurately reflects the needs of our residents and communities in Haringey. 

• Follow-up on our recent letter to the Secretary of State for Housing, Communities and Local Government, where we pressed for fair funding for local government and highlighted the increasing cost and need within Haringey and specific challenges we face as an outer London borough. 

Work with other outer London boroughs to call on the Government to rebalance the inadequate funding distribution and rectify the changes to the funding formula of particular detriment to our region. 

Deliver savings efficiencies to reduce our budget shortfall, while minimising the impact on vital frontline services and our most vulnerable and deprived residents, maintaining the strong track record of services we have developed despite acute funding challenges. 

Continue to update residents on the savings efficiencies we are delivering.