Cllr Dana Carlin on tough choices to be made in the budget

London councils collectively face a shortfall of £700 million in 2025/26 alone and the Local Government Association predicts a nationwide gap of £2.3 billion.

For more than a decade, councils have been underfunded. 

There is unprecedented demand for services at the same time as rising costs caused by historically high interest rates and inflation.

The housing crisis is putting a huge strain on budgets as the number of families in temporary accommodation and the cost of providing that accommodation has dramatically increased.   

It was revealed last week that London boroughs are spending £4 million a day on housing homeless households. These are all pressures beyond the control of local authorities.

In Haringey, we face these stark challenges and more.

Cllr Dana Carlin says the council faces some stark challenges (Image: Haringey Council) We have one of the highest levels of deprivation in the capital but are considered an ‘outer London’ borough, meaning we receive even less funding than many of our neighbours.  Therefore, funding is not fairly distributed based on the needs of residents, so we miss out on much needed resources to meet all the responsibilities we have.

Additionally, the money we get from council tax receipts to help pay for critical services is lower because of an average B and C rate, rather than Band D across London.

Our population is growing, including a 24% rise in the number of residents over 65 years. This has inevitably led to ever-increasing numbers of adults needing care and support from the council as well as the rising complexity of cases.

Critically, core government grants for the borough are more than £100 million less in real terms than in 2011.

In short, we have inadequate funding for a growing population who need more support than ever as costs continue to rise.   

Next month we will be launching our budget consultation for 2025/26.   

There will be tough choices in some areas as we continue to work hard towards balancing the books, but we will always ensure Haringey’s values guide these difficult decisions.

We remain resolute in our commitment to supporting the most vulnerable and safeguarding the services we know our residents value. 

In Haringey, we have a history of strong financial management. To overcome 14 years of austerity, we will need additional funding from the Government and will continue, along with other councils, to make a strong case for that to happen.

We will also remain open and transparent with our residents, so they fully understand the ongoing budget pressures we face.

• Cllr Dana Carlin is cabinet member for finance and corporate services at Haringey Council.