Haringey Council Declares Funding Emergency as London Boroughs Struggle
Haringey Council has declared a funding emergency, requesting up to £37 million in government support to prevent financial collapse. The borough, facing rising costs and increasing demand for services, has warned that it is under severe financial strain following years of budget cuts.
Council leader Peray Ahmet highlighted that Haringey is in an exceptionally difficult position, describing it as a borough with outer London levels of funding but inner London levels of need. The council’s latest budget report paints a stark picture, revealing that without additional support, critical services could face cuts.
Latest London News on EyeOnLondon
Abseil Off Tottenham Stadium for Charity
Take on the 42-metre abseil challenge at Tottenham Hotspur Stadium and support the London Ambulance Charity. Would you take the plunge?
Woman Arrested Over Citizenship Test Fraud
A 61-year-old woman allegedly used wigs and disguises to take citizenship tests for others, helping them gain UK residency fraudulently.
Could London Become a Childless City?
With birth rates dropping, rising costs, and fewer family-friendly spaces, some experts believe London could see a major population shift.
Stay up to date with London’s latest news, events, and discussions by visiting EyeOnLondon.
The request for £37 million in exceptional financial support follows similar emergency funding granted to Havering and Croydon councils, both of which continue to struggle under extreme financial pressure. Croydon, which collapsed into bankruptcy three times between 2020 and 2022, is still dealing with a £1.4 billion debt burden. Meanwhile, Havering has applied for emergency funding to bridge a £74 million budget gap, largely driven by rising social care costs.
Why Is Haringey in Crisis?
Like many other councils, Haringey has been hit hard by more than a decade of austerity, combined with soaring costs for social care, housing, and other essential services. The council’s leader emphasised that, despite receiving an extra £16 million in government funding, this was not enough to reverse 14 years of budget cuts.
To stabilise its finances, Haringey is planning a council tax increase of nearly five per cent, which will see Band D residents paying £2,207 per year—up £100 from the previous year. In addition, rents and service charges are set to rise, and the council will introduce further cost-cutting measures.
The situation in Haringey mirrors wider financial struggles across London. Earlier this month, Newham Council announced plans to raise council tax by 10%, as it faces severe pressure from rising homelessness costs.
What Happens Next?
Haringey Council remains hopeful that the government will approve its request for exceptional financial support. Ms Ahmet described the funding as an “approved overdraft” that the council can draw upon if needed to protect vulnerable residents and frontline services.
According to the Local Government Association, councils across the UK are facing unprecedented financial challenges, with many warning of potential cuts to essential services.
However, the broader financial crisis in London’s local government raises urgent questions about the long-term sustainability of council funding. With multiple boroughs on the brink of collapse, calls are growing for a fairer funding system that reflects the true needs of local communities.
Read more about local government funding challenges on the Local Government Association website.
Do you think councils should receive more government support, or should they find new ways to manage their budgets? Have your say in the comments below!
For more updates on local government, housing, and London’s financial landscape, visit EyeOnLondon.
Follow us on:
Subscribe to our YouTube channel for the latest videos and updates!
We value your thoughts! Share your feedback and help us make EyeOnLondon even better!
