Haringey Council overspends by nearly £20 million in 2023/24

A report to Haringey’s cabinet meeting yesterday (16th July) revealed that the council had overspent by almost £20 million last year. Less than 80% of the council’s planned savings were achieved, leaving the organisation out of pocket to the tune of £19.248 million - which it will have to take from its depleted reserves. This was an increase of 550% from the projected £3.5 million overspend previously planned for.

A damning line from the council’s own report noted that “the historic practise of rolling forward unspent budgets without challenge is no longer sustainable,” essentially admitting that previous budgeting practices have been a major cause of current financial difficulties. Speaking at the cabinet meeting, Cllr Dana Carlin (Cabinet Member for Finance) said in relation to this point that from now on “The entire capital programme will be continuously looked at to make sure its fit for purpose and affordable,” admitting that up to now it has not been continually reassessed.

Examples of baffling losses included £2.3 million lost due to “data quality issues” in a software transfer in Children’s Services, and a review of SEND transport finding a black hole of £600,000 which had not previously been accounted for. Another area of considerable overspend was found in the council’s terrible record on housing disrepair, which the report said had caused a “high cost incurred in the use of external solicitors to deal with disrepairs cases, which increased tremendously in 2023/24.”

Other problem areas were parking and the newly insourced New River Fitness Centre, both of which lost hundreds of thousands of pounds.

Cllr Luke Cawley-Harrison (LD-Crouch End), Leader of the Opposition in Haringey, said:

“We have been warning for years that Haringey Council wasn’t looking after the finances, but the stark reality of the situation we are now faced with is shocking. We know local government finances are in a bad state around the country, but so much of Haringey’s huge overspend is self-inflicted, and this report gives strong indication that bad practises and a lack of clear and thorough oversight have contributed to the problem. 

“A couple of months ago, government data [from Oflog, the Local Government watchdog] showed that Haringey ranked 311th of 318 local councils for its running of the finances, behind even councils like Birmingham which have declared bankruptcy, and this damning report confirms that ranking is spot on. Something has to change immediately because the current situation is completely untenable.”