Haringey Council has revealed it is on track to blow its latest budget by £20 million.
The council has warned that it is facing “unprecedented pressures beyond our control” as it has been underfunded by the government over a decade.
Councillors have warned Haringey is facing “substantial financial challenges” particularly due to a rise in the cost of social care and the cost of temporary accommodation for homeless people.
The borough has revealed that almost £14million of its deficit has been caused by an increase in demand and costs of adult and children’s social care.
There has also been an extra £4.83million pressure on the borough’s housing budget, as it is having to spend more money on temporary housing for homeless residents.
Haringey has argued that it continues to deliver for residents in the backdrop of a cost of living and housing crisis as well as increased costs and higher interest rates.
Councillor Dana Carlin, cabinet member for finance and corporate services, told councillors at a cabinet meeting on Tuesday that officers are looking at spending in the borough to make sure “every pound counts”.
Cllr Carlin said in a statement: ““We continue to face unprecedented pressures beyond our control, and this is reflected in the budget forecast of a £20m deficit for the financial year 2024/25.
“Local authorities across the country are facing huge financial challenges, with London Councils predicting the capital’s boroughs face a collective £700m shortfall.
“Unfortunately, Haringey, like many boroughs, has been underfunded by government for over a decade and a fair funding review is long overdue.
“For historic reasons, Haringey is considered an outer London borough for funding purposes but has all the pressures of an inner London borough with the additional burden of lower business rates receipts and an average of Band C for council tax.”
She continued: “We put substantial funding into our 2024-25 budget to deal with the anticipated overspend and will continue to work hard to mitigate the strain on our resources.
“An additional £25.4m was invested into our housing, adults’ and children’s services, as well as £8.7m to cope with inflationary pressures.
“We are doing everything in our power to reduce the deficit. We will maintain our focus on good financial management and continue to be open with our residents about the challenges.”
