Agenda item

To scrutinise the areas of the recent Q1 Finance Update report that relate to the Panel’s remit, including Adult Social Care services.

This report was originally published as part of the Cabinet agenda papers for 15^th September 2026 and the Overview & Scrutiny Committee agenda papers for 17^th September 2026.

The Panel considered the Quarter 1 finance update for 2026/27, focusing on the Adult Social Care budget and the Adults, Housing and Health forecast set out in Appendix 1B.

• In response to a question regarding the revised zero net budget for the Director of Public Health, the Head of Finance explained that Public Health was funded through the ring-fenced Public Health Grant, with the budget forecast to balance in-year. The Director of Public Health advised that the grant totalled approximately £29 million and funded statutory services, including sexual health, school nursing, and drug and alcohol services, alongside contributions to wider Council services supporting public health outcomes. Officers offered to provide the Panel with a further breakdown of the grant expenditure at a subsequent meeting.
• The Panel questioned the forecast £713,000 overspend in Adult Social Care, which was attributed primarily to pressures relating to the emergency response service and increased legal costs. Officers explained that the legal costs related to potential litigation with a provider over fees, which was progressing positively. In relation to the emergency response service, officers highlighted the challenges of forecasting demand-led services, including Connected Care, where a shortfall against the planned savings target had contributed to the pressure. Mitigations were being explored, and the forecast was considered broadly proportionate in the context of the overall Adult Social Care budget of approximately £150 million.
• In response to questions about savings delivery and the implications for future budgets, officers reported that Adult Social Care had delivered 86% of its savings in the previous financial year. The supported living savings target remained at risk following the diversion of resources to address the failure of a national community equipment provider, which had affected 21 London boroughs. Officers confirmed that the intention remained to deliver the saving, although the anticipated timeframe had been extended from two to three years to three to four years.
• The Panel was advised that £3.6 million of recurrent funding had been allocated to additional staffing in the current year to support improvements in Adult Social Care. Officers also highlighted ongoing work to strengthen prevention, support carers, review day opportunities and respite provision, improve transitions from children’s to adult services, and develop local residential and nursing care provision.
• In response to a question about the relationship between national government funding and local demand, officers explained that the Fair Funding Review considered factors including demographics, deprivation and councils’ revenue-raising capacity, rather than actual expenditure alone. The Director of Public Health and other officers highlighted the additional demand and complexity experienced in Haringey, including higher-than-average levels of working-age adults receiving care and support, and lower healthy life expectancy, which placed further pressure on the budget.
• The Panel also raised concerns about the impact of rising interest rates on the cost of servicing Council debt and the implications for Adult Social Care. The Head of Finance advised that the wider implications for Council debt servicing would be more appropriately addressed through overall scrutiny. The Chair requested that a response be sought from the relevant officer before the next meeting.
• The Panel further discussed the management of adult social care debt, including a debt write-off of £101,465. Officers explained that work had been undertaken to improve the timeliness of financial assessments and ensure that residents were informed of potential care costs at an early stage. This included staff training, guidance on financial conversations, support from external specialists and work to improve the accessibility of correspondence with residents. Officers noted that historic debt continued to be addressed and that provision for bad debt was incorporated into the budget and forecast.