Agenda item

Report of the Corporate Director of Finance and Resources (S151 Officer). To be presented by the Cabinet Member for Finance and Corporate Services

The Cabinet Member for Finance and Corporate Services introduced the report.

It was explained that, over the last financial year, Haringey had prioritised supporting its most vulnerable residents and strived to provide excellent services that residents relied on and enjoyed.

However, it was stressed that, despite considerable extra funding being allocated to the 2024/2025 budget, the outturn report showed that demand and the cost of delivering essential services again outstripped funding, primarily in adults’ and children’s social care and the cost of providing temporary accommodation. It was explained that adult social care supported almost 4,000 vulnerable adults, children’s social care supported over 5,000 children, and there were 2,630 households in temporary accommodation.

It was noted by the Cabinet Member that these overspends were predicted throughout the year. The Council had initially agreed with the government on £28 million of potential exceptional financial support, but judicious use of various contingency funds and reserves reduced this to a £10 million borrowing requirement to close the budget.

The Council did everything possible to mitigate these additional costs and to ensure that every pound counted. It did this to keep cuts to frontline public services in Haringey to an absolute minimum. Haringey was a borough with high levels of deprivation and deep inequalities between east and west. The Council remained ambitious about what it could do to help local people, even with very serious limits on local public spending. It worked tirelessly to make the borough fairer and greener with the tools and funds available.

In response to comments and questions from Councillors Hakata and Cawley-Harrison, the following information was shared:

• It was explained that the Council was, when developing financial plans, working to take a whole Council approach to delivery of services.
  
  
• It was explained that the Council was borrowing to meet financial challenges for year 2024/25, and that repayment would be undertaken over a 20-year period.
  
  
• Officers noted that there were additional unknown pressures that were difficult to forecast for, particularly relating to changes in demand. It was explained that the Council had undertaken work to undertake monitoring on pressures to understand the underlying causes, which would help the Council to ensure that it would be better prepared to forecast better in future.
  
  
• It was explained that contingency funding for 2025/26 had been increased, to meet with the expected financial challenges for the upcoming year.
  
  

RESOLVED:

That Cabinet:

1. Noted the provisional revenue and capital outturn for 2024/25 as detailed in the report.
   
   
2. Approved the capital carry-forwards as set out in Appendix 3.
   
   
3. Approved the transfers to/from reserves as set out in Appendix 4.
   
   
4. Approved the budget transfers as set out in Appendix 5.
   
   
5. Noted the debt write-offs approved by officers in Quarter 4 of 2024/25 as set out in Appendix 6;
   
   
6. That, in light of the changing financial scenario facing the Council, approved the re-instatement of fees for Haringey Learns adult learning service in line with the policy for academic year 2025/26 as set out in Section 11.0 and attached as Appendix 7.
   
   

Reasons for the Decision

A strong financial management framework, including oversight by Members and senior management, was an essential part of delivering the Council’s priorities and statutory duties. It was necessary at year-end to review the use of reserves and balances in light of the financial position during the year and knowledge of the Council’s future position and requirements.

Alternative Options Considered

The Corporate Director of Finance and Resources, as Section 151 Officer, had a duty to consider and propose decisions in the best interests of the authority’s finances and that best supported the delivery of the agreed Corporate Delivery Plan outcomes whilst maintaining financial sustainability. This report by the Corporate Director of Finance and Resources attempted to address these points. Therefore, no other options were presented at that time.