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 by the Cabinet Member that Haringey had a number of achievements over the past four years that were driven by its priorities. From a ‘Good’ rating in Children’s services, building hundreds of beautiful, high-quality council homes, planting thousands of trees to improving governance and internal processes. However, it was stressed that Haringey was still a Council where many residents, especially those in the eastern wards, continued to live in circumstances of poverty, ill health and poor outcomes. It was explained that, as a borough, it had to make deep savings for over 10 years. Considered outer London, it did not receive the top-ups that were awarded to some councils. But it also had an economy made up of low wages and small businesses, many working from home. It did not have the vast tracts of land for development and business that its northern neighbours could utilise. It fell through the cracks.

It was additionally explained that the high level of need, increasing numbers of those over 65 and a large number in insecure private sector housing (over 50% in some wards) continued to drive the increasing cost of providing services that residents relied on. Adult social care, children’s social care, temporary accommodation were the three primary drivers seen up and down the country.

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

• Officers explained that this was the first time that the Medium Term Financial Strategy had been brought to Cabinet in July, rather than September, which allowed for early reporting and planning.
  
  
• It was explained by officers that a Fairer Funding consultation was underway. However, it was stressed that the Council had developed the proposed MTFS based on current figures, rather than assuming any changes.
  
  
• It was noted that there was a level of risk relating to staff pay awards which was dependent on negotiations with Trade Unions. It was additionally noted that there was an assumption that inflation was expected to decrease, which was expected to reduce any required pay award.
  
  
• It was stressed that any assumptions in the report were subject to change, and that the report gave an indication of where the Council was currently, and how it would work to tackle its current financial pressures.

RESOLVED:

That Cabinet:

1. Noted the Council’s financial position as set out in the report which set the foundations for the full budget for 2026/27 that would be presented to Cabinet in February 2026 and onward to Full Council in March 2026.
   
   
2. Noted the agreed pressures for 2026/27 (Appendix 1) and any additional emerging budget challenges since the last update in March 2025 that had been identified for 2026/27 and across the medium term as set out in Section 12.
   
   
3. Noted the agreed revenue savings proposals summarised in Section 12.1.
   
   
4. Noted the risks and uncertainties in Section 18 that still remained.
   
   
5. Noted that the General Fund Revenue Budget, Capital Strategy, Capital Programme, HRA 2026/27 Budget and Business Plan and Treasury Management Strategy Statement would be presented to Cabinet on 11 February 2026 to be recommended for approval to the Full Council meeting taking place on 3 March 2026.
   
   
6. Noted the new Capital Delivery Governance Framework attached as Appendix 2.

Reasons for decision

The Council had a statutory obligation to set a balanced budget for 2026/27 and this report formed a key part of the budget setting process by setting out the approach to delivering this and a refreshed Medium-Term Financial Strategy (MTFS). It also highlighted key updates in terms of funding, expenditure, risks and issues since the last report in March 2025. The final budget for 2026/27, Council Tax levels, Capital Programme, Treasury Management Strategy, Housing Revenue Account (HRA) budget and Business Plan would be presented to Cabinet in February 2026 for recommending to Full Council on 3 March 2026.

Alternative options considered

The Cabinet had to consider how to deliver a balanced 2026/27 budget and sustainable MTFS over the five-year period 2026/31, to be reviewed and adopted at the meeting of Full Council on 3 March 2026.

This report was a key tool in achieving this as it set out the approach, scope and timetable to delivering the 2026/27 Budget.