The Overview and Scrutiny Committee of Haringey Council met on Thursday 18 January 2024 to discuss the council's draft budget and medium-term financial strategy, as well as the treasury management strategy for the upcoming financial year. The committee reviewed proposed savings and growth across various directorates, examined the capital programme, and considered the financial plans for the Housing Revenue Account.

Treasury Management Strategy Statement 2024/25

The committee was scheduled to scrutinise the proposed Treasury Management Strategy Statement (TMSS) for 2024/25. This strategy is a requirement under the Chartered Institute of Public Finance and Accountancy's (CIPFA) Code of Practice and the Local Government Act 2003. The TMSS outlines how the council will manage its cash flows, borrowing, and investments, and the associated risks. The report noted that the strategy would be influenced by factors such as inflation, higher interest rates, and a weakening economic outlook. It also detailed the council's borrowing and investment strategies, including proposed counterparties and investment limits, and outlined the treasury management prudential indicators for the next financial year. The committee was asked to provide any comments on the draft TMSS before it was presented to the Full Council for approval.

Scrutiny of the 2024/25 Draft Budget and 5 Year Medium Term Financial Strategy (2024/25 - 2028/29)

A significant portion of the meeting was dedicated to the scrutiny of the council's draft budget for 2024/25 and its 5-year Medium Term Financial Strategy (MTFS) for 2024/25 to 2028/29. The report highlighted the challenging financial situation facing local authorities, with Haringey Council facing a significant budget gap. The draft budget included proposals for growth in demand-led services, such as adult social care, temporary accommodation, and children's services, due to increased costs driven by inflation and national economic factors.

The committee was presented with details of the draft General Fund (GF) Revenue Budget, the draft Housing Revenue Account (HRA) Budget and Business Plan, and the draft capital programmes for both funds. The report detailed proposed revenue growth and savings, as well as new capital investment proposals across various directorates. Significant attention was given to the HRA, including proposed rent and service charge increases, and the capital programme for maintaining and developing council housing.

The committee was also to consider the Dedicated Schools Budget (DSB) and the progress of the Safety Valve Programme, which aims to address deficits in the High Needs Block. The report outlined the provisional National Funding Formula allocation for 2024/25 and the expected DSG reserves forecast.

The scrutiny process involved detailed examination of savings proposals, including those that were previously agreed but were no longer deemed viable. The committee was presented with new revenue growth and savings proposals, as well as details of the proposed capital expenditure plans by directorate. The financing of the capital programme, including borrowing strategies and the affordable borrowing limit, was also a key area of discussion.

The report also included appendices detailing the savings tracker, new revenue growth and savings proposals, and capital budget proposals. The committee was asked to compile final recommendations to be shared with the Cabinet.

Additional Report Pack: Budget Scrutiny Recommendations

An additional report pack provided a summary of the comments and recommendations arising from the budget scrutiny process undertaken by the Overview and Scrutiny Committee and its Scrutiny Review Panels. This report detailed specific savings proposals, including their RAG status (Red, Amber, Green) for delivery, and comments on their progress. The committee was asked to approve these final budget recommendations to be presented to the Cabinet.

The recommendations covered a range of areas, including:

• Adults, Health & Communities: Concerns were raised about the delivery of savings related to mental health services, lease conversions, and the use of social housing for temporary accommodation. The committee requested further details on how savings would be achieved and assurances regarding the impact on vulnerable residents.
• Children's Services: The committee noted the savings proposals but sought further information on their feasibility and impact.
• Climate, Community Safety and Culture: The committee recommended against the proposed saving to stop providing hard copy newspapers in libraries, citing concerns about the impact on elderly citizens and community language provision. They also requested further information on varying library opening hours and the cost-effectiveness of self-service technology.
• Housing, Planning and Development: The committee sought clarification on the funding of capital programmes, particularly the proportion of council funding versus developer or S106 contributions. They also requested further details on the self-financing of schemes like New River Sports & Fitness and the rationale behind increased costs for the Corporate Laptop Refresh scheme.
• General Issues: The committee expressed concern about the overall budget gap and sought assurances that key services, particularly in Children's Services, would be protected from further cuts. They also requested assurances that the quality of care in adult social care would not be negatively impacted during contract negotiations.

The committee was asked to approve these recommendations for submission to the Cabinet.