Agenda item

Report of the Corporate Director of Finance and Resources. To be presented by the Cabinet Member for Finance.

DECLARATIONS OF INTEREST MADE FOR THIS ITEM:

None

RESOLVED:

That Cabinet:

1.    Noted the provisional revenue and capital outturn for 2025/26

2.    Approved the capital carry forward requests

3.    Approved the transfers to/from reserves

4.    Approved the budget virements

5.    Noted the debt write-offs approved by officers in Quarter 4 of 2025/26

6.    Noted the Finance Recovery Closure report

Reasons for 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 considering 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 support the delivery of the agreed Corporate Delivery Plan outcomes whilst addressing the Council’s financial sustainability.

This report by the Corporate Director of Finance and Resources had attempted to address these points. Therefore, no other options were presented at this time. 

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

It was explained that the financial position facing Haringey Council was recognised as challenging. The Council had received a statutory recommendation from its external auditor, which highlighted the need to strengthen its financial position through improved financial management and the delivery of savings across service areas.

The year-end financial position showed that the Council required £40.6 million of Exceptional Financial Support (EFS) from the Government. This represented a significant level of support and created a longer-term financial obligation for the authority.

The need for EFS did not arise in isolation. A growing number of local authorities had experienced similar financial pressures as service demand increased while funding levels remained constrained. It was considered that the Council's financial position reflected wider challenges affecting local government funding over an extended period.

Without a revised long-term funding framework for local government, these financial pressures were expected to continue affecting councils across the country.

During the year, the Council spent £792 million delivering services and support to residents. This included services for 5,890 adults receiving adult social care support, 4,671 children receiving children's social care services, and 2,725 households living in temporary accommodation.

Many of the services provided by the Council were essential and relied on the procurement of specialist and often high-cost provision, particularly within adult and children's social care. The cost and availability of housing also continued to place pressure on temporary accommodation budgets, which remained one of the Council's most significant areas of expenditure.

The publication of the outturn report also provided an opportunity to reflect on previous financial decisions made by the Council, including periods during which council tax increases were constrained and reserves were reduced. The current administration recognised the need to identify sustainable and equitable approaches to maintaining services and meeting resident needs within a challenging financial environment.

Officers had continued to work on measures aimed at improving the Council's financial position. The administration acknowledged this work and confirmed its commitment to strengthening financial governance and improving the Council's financial performance over time.

Following questions from Councillors Khan, Carlin and Cawley-Harrison the following information was shared:

• It was explained by the Cabinet member that the Council would not be seeking to cut services, but instead look for progressive solutions to generate revenue. It was additionally stressed that the Council would continue to lobby central government to ensure that services were adequately funded.
  
  
• The Cabinet Member highlighted that it was welcomed that the Council currently had estimated a reduced reliance on Exceptional Financial Support (EFS). However, it was noted that future budgetary assumptions were set based on estimations, which would be updated based on demand pressures.
  
  
• It was stressed that the Council was awaiting finalisation on grant funding from the Greater London Authority, which had been delayed, and which would give the Council certainty when received. It was stressed that the Council was committed to Council house building.
  
  
• It was explained by the Cabinet Member for Housing that many residents felt that they were struggling with current service charges in Council homes and stressed that the Council would need to look carefully at any proposed changes and the potential impact on residents.
  
  
• The Cabinet Member for Finance and Corporate explained that the Council was working to create more transparency with the Council’s financial position. It was stressed that the Council would be open to ensure openness and transparency regarding officer processes around budgetary responsibility.

RESOLVED:

That Cabinet:

1.    Noted the provisional revenue and capital outturn for 2025/26

2.    Approved the capital carry forward requests

3.    Approved the transfers to/from reserves

4.    Approved the budget virements

5.    Noted the debt write-offs approved by officers in Quarter 4 of 2025/26

6.    Noted the Finance Recovery Closure report

Reasons for 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 considering 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 support the delivery of the agreed Corporate Delivery Plan outcomes whilst addressing the Council’s financial sustainability.

This report by the Corporate Director of Finance and Resources had attempted to address these points. Therefore, no other options were presented at this time.