Haringey Labour accepts bailout loan from government but rejects oversight
Haringey Labour yesterday passed their budget, including accepting a £37 million bailout from government (funded by a mixture of selling Haringey’s assets and borrowing at 5% interest from central government), but rejected Liberal Democrat amendments which would have created more oversight of the council’s finances, and reduced the amount which needed to be borrowed.
Had they passed, the Opposition amendments would have:
- Created a ‘Voluntary Improvement Board’, bringing in fresh eyes and expertise to tackle the council’s overspending;
- Created a ‘Contract Management Board’ to oversee the council’s contracts, an historically wasteful part of Haringey’s spending;
- Cut waste in areas such as the more than £1 million spent on printing, creation of promotional YouTube videos (many of which receive under 100 views), reducing the 8 political officers supporting the Labour Leader’s Office (more than are in the council's senior leadership team) and ending the practice of providing councillors with free sandwiches;
- Created a voluntary council tax scheme;
- Created an incentive scheme for private sector landlords to provide properties to the council for temporary accommodation, which would save £7.5 million over the next 3 years.
Throughout the debate, Labour administration councillors did not engage with the fact that they were borrowing millions from the government in order to balance the budget.
Speaking at the meeting, Cllr Luke Cawley-Harrison (LD-Crouch End), Leader of the Opposition, said:
“Residents know that this is a truly unprecedented budget. But contrary to the optimistic tone from the councillors opposite - it is not a budget this Labour administration wants to set, and it's certainly not a budget that residents want to have set for them as taxpayers.
“This is your opportunity to agree that you need help, and accept it. Show to the residents of Haringey that you are putting the council, and them, ahead of anything else, and commit to this additional oversight and ongoing financial management support. Because if you don’t, the residents will quite rightly claim that Haringey Labour is out of ideas, and out of money, and that’s it’s time for real change in the running of this borough.”
Following Labour’s rejection of the Lib Dem amendments, Cllr Cawley-Harrison, said:
“I am concerned that Labour are not taking this huge problem seriously and are continuing with their ‘we know best’ attitude. How can residents be asked to tighten their belts while the administration continues spending half a million on employing eight political support officers in the leaders office, and providing free sandwiches for councillors - all while rejecting external oversight? Residents will rightly be appalled.”