Haringey seeks £7.6m savings after £138m government bailout

Haringey Council has unveiled plans for £7.6 million of savings after relying on £138 million of emergency government support to avoid effective bankruptcyJohann Beckford, the cabinet member for finance at Haringey Council unveiled a raft of measures that the Green Party-led administration hopes could save about £7.6 million next year.The local authority is aiming to make a dent in mounting financial pressures that have seen it rely on £138m of “exceptional financial support” from the UK Government – effectively an emergency loan to stop it from going bust – over the past two years in order to balance the books. Mr Beckford said the Greens, which have minority control in Haringey, would be calling for reforms from Westminster to better support struggling local authority budgets.The savings were identified by officers for potential implementation in the 2027/28 financial year, which is set to start next April.Mr Beckford acknowledged the seriousness of the situation when opening Tuesday’s cabinet meeting.Johann Beckford, a Green councillor and cabinet member for finance at Haringey CouncilHaringey CouncilHe said: “Haringey’s financial position is perilous – there’s no point in lying about that.”About £1.3m of the new cost-saving measures would be subject to consultation. The remaining £6.3m would be achieved through “management internal efficiencies”, according to the council.The £1.3m to be saved across the council’s “directorates” include £500,000 from adult and social services, £642,000 in housing, £140,000 from the ‘environment and resident experience’ service and a further £55,000 from the culture, strategy and communities budget.The proposals were described as the “start of a conversation” for the local authority’s draft 2027/28 budget, due to be presented to cabinet members on February 20. Taken together with previously approved cuts – and subject to the outcome of any new consultation – the council said it is currently on track for £20.4m in savings for 2027/28, assuming “that all current and previous years savings are delivered on a recurring basis”.In their report, officers described Haringey’s financial position as “beyond critical”, with the emergency support from ministers’ becoming “the only option available” for the council to meet its obligations in recent years.Mr Beckford said that, with well over 30 councils in England currently in receipt of this funding, Haringey’s situation was “far from exceptional”.The council estimates it has endured a £143m reduction in real-terms funding from central government since 2010.These cuts, the council said, had come at a time in which demand for statutory services like adult social care have been “escalating”.Mr Beckford said the Green administration, which ended Labour’s 55-year control of Haringey at the May local elections, was “demanding” immediate reforms from Westminster, including the introduction of a nationwide council house building programme and a national care service.Read MoreHe told councillors he “fully expects” new potential cost-saving measures to be part of the discussion around the council’s budget for 2027/28.It comes after Haringey was ordered to make "fundamental changes" to its housing service following a watchdog review that uncovered what it described as "very serious failings" that left tenants at risk.Haringey Council was handed the lowest possible consumer grading by the government's Regulator of Social Housing following an inspection that revealed a backlog of almost 4,000 overdue fire safety actions, including around 1,400 considered high risk.The Greens blamed the previous Labour administration for the situation, while vowing to fix housing services for residents.