The Employees' Consultative Forum met on Wednesday 28 January 2026 to discuss the draft revenue budget for 2026/27 and the draft Medium Term Financial Strategy (MTFS) to 2028/29, as well as the Annual Workforce Profile Report for 2024-2025. The council faces significant financial challenges, with a projected budget gap of £32.5 million over the next three years, although recent government funding changes have improved the council's financial outlook. The forum also reviewed the annual workforce diversity report, highlighting areas of progress and ongoing challenges in achieving a representative workforce.

Draft Revenue Budget and Medium Term Financial Strategy

The council is facing significant financial challenges, with a projected budget gap of £32.5 million over the next three years. This gap was initially estimated at £32 million, assuming a 4.99% council tax increase for three years. However, a revised provisional finance settlement, received on 17 December, has significantly improved the council's financial position. This update, driven by changes in the indices of multiple deprivation which now account for housing costs, means Harrow is now projected to gain £24 million over three years, reducing the budget gap to a more manageable £11 million.

Despite this improvement, the council still faces a budget gap of around £9 million in 2026/27, which will need to be funded from one-off sources. The final settlement is expected on 9 February, with the final budget to be presented to Cabinet on 19 February.

The significant growth in the budget is primarily driven by increased costs in adult services and housing. Adult services have seen a £14 million increase in growth, and housing has seen a £20 million increase, largely due to temporary accommodation costs. These figures are substantial and disproportionate to any marginal changes in senior management structures.

Councillors raised concerns about the sustainability of the budget and the council's reliance on council tax. While the council is exploring efficiencies and investing in services to reduce costs, such as acquiring properties for temporary accommodation and potentially building its own care homes, the fundamental issues of adult social care and temporary accommodation funding need national government intervention.

The council's council tax is the third highest in London, and a significant portion of its budget comes from council tax due to a lower level of government grant and a smaller business base compared to other London boroughs.

Discussions also touched upon the Dedicated Schools Grant (DSG), which has a projected deficit of £32 million by the end of 2025/26. The government's commitment to cover future SEND costs from 2028 onwards is welcomed, but the handling of existing and future deficits remains unclear.

The council is also facing challenges with the High Needs Block funding for Special Educational Needs and Disabilities (SEND), which is running at a deficit. While the council has reserves that could cover this deficit, it would leave no funds for other services.

Annual Workforce Profile Report 2024-2025

The Annual Workforce Profile Report for 2024-2025 was presented, detailing the diversity of the council's 1,992 staff (excluding schools). A key finding is the significant improvement in data completion rates for protected characteristics, rising from 26.6% in 2018/19 to 52.3% in 2024/25. However, this still leaves a considerable data gap, with many staff choosing not to disclose information on religion, sexual orientation, and disability.

Key findings from the report include:

• Age: The workforce is predominantly aged 35-64 (82.5%). Younger employees (16-24) are under-represented at 2.1%, below the London average, and are concentrated in lower pay bands.
• Disability: Only 5.5% of staff have disclosed a disability, which is below the borough's population average and the London average. Those with disclosed disabilities are predominantly in lower pay bands.
• Race (Ethnicity): BAME staff constitute 52.2% of the workforce, exceeding the London average but remaining below the borough's population percentage. BAME representation decreases significantly in higher pay bands, indicating potential barriers to progression. Recruitment data shows a decline in BAME representation at each stage of the process, suggesting potential inequities.
• Sex: Women make up 60.2% of the workforce. While senior-level female representation has slightly decreased, it remains above the London average. Recruitment data shows women applying, being shortlisted, and being appointed at higher rates than men.
• Religion and Belief: Data remains significantly underreported, with over 32.4% of employees not disclosing their religion. Religious diversity is concentrated in lower and mid-level pay bands, with limited representation in senior roles.
• Sexual Orientation and Gender Reassignment: A high proportion of staff (31.7%) did not disclose their sexual orientation. Heterosexual representation is lower than the London average, and LGBT+ representation is also below the London average, potentially due to underreporting. Two staff members reported undergoing gender reassignment.
• Pregnancy and Maternity: Most female staff who returned from maternity leave remained with the organisation for over four months. However, all early leavers and non-returners were from BAME backgrounds. Staff aged 35-44 had the highest long-term return rate.

The report highlighted ongoing efforts to embed equity, diversity, and inclusion across the organisation, including staff networks, an EDI Board, and enhanced training. However, concerns were raised about the underreporting of data and the need to address potential biases in recruitment and progression, particularly for BAME staff and those with disabilities. The council is committed to reviewing its recruitment processes to address trends where white applicants are more likely to be employed than BAME applicants.