The Overview and Scrutiny Committee met on Monday 19 January 2026 to scrutinise the draft 2026/27 budget and the Medium-Term Financial Strategy (MTFS) for 2026-2031. The committee also reviewed the draft Treasury Management Strategy Statement for 2026/27 and received an update on the Local Government Settlement for 2026/27.

Scrutiny of the 2026/27 Draft Budget and Medium-Term Financial Strategy 2026/2031

The committee engaged in a detailed discussion regarding the council's draft budget and MTFS, highlighting significant financial challenges. A key concern was the structural problem with local government funding, which Councillor Matt White, Chair of the Committee, argued meant the council's statutory responsibilities could not be met without increased funding or fundamental changes to service delivery. Taryn Eves, Corporate Director of Finance and Resources, acknowledged the challenging figures and stated that paragraphs 13.6 and 13.7 of the Cabinet report, which suggested budget gaps could be addressed by reducing services, should be considered in the context of the council's efforts to transform service delivery and maximise income. The committee recommended that budget reports should accurately reflect these structural financial issues and make clear that the situation was unsustainable without increased local government funding or fundamental changes to services.

The committee also reviewed the recommendations from various Scrutiny Panels. For the Adults & Health Scrutiny Panel, concerns were raised about the cumulative projected budget gap of £192.5m over the MTFS period and the significant annual interest charges incurred by Exceptional Financial Support (EFS). The committee requested more detailed information on the long-term sustainability of these interest payments and capital repayments. Concerns were also raised about potential cuts to the Better Care Fund and their impact on adult social care services. The committee welcomed proposals for digital improvements but noted past instances where similar initiatives had not fully materialised, requesting further reassurance on their delivery. A significant ongoing risk identified was the rising costs from service providers within adult social care, with reference made to a KPMG Value for Money Risk Assessment highlighting inadequate procurement processes and forecasting for adult social care spend. The committee recommended further monitoring of procurement processes.

For the Culture, Community Safety & Environment Scrutiny Panel, recommendations included a request for more detailed figures on Leisure Commercialisation and social value, and for business cases related to savings to be included in future budget papers. The panel also recommended that robust systems for monitoring the condition of the Moselle Brook culvert be put in place following initial repairs. Concerns were raised about the rationale behind purchasing waste management fleet vehicles rather than leasing them, with the committee unable to scrutinise this decision fully without the business case. The accuracy of figures presented for tree planting was also questioned.

The Housing, Development & Planning Scrutiny Panel raised concerns about the sustainability of long-term borrowing costs within the Housing Revenue Account (HRA) and recommended the annual publication of an HRA Debt Management Plan. They also recommended an assessment of tenant affordability in light of assumed year-on-year rent increases and a review of the Neighbourhood Moves Scheme to ensure limited housing resources were used more effectively. The committee also sought further clarification on how the council planned to improve performance in turning around void properties.

The Children & Young People's Scrutiny Panel reported that previously agreed savings had been delivered and they were satisfied with this. They noted a new budget pressure related to rising costs in certain areas and robust queries were raised about additional staff for subject access requests. Invest-to-save measures on foster care allowance increases and accommodation for care leavers were welcomed. The panel also highlighted concerns about some schools running a deficit, although these budgets were separate from the Council's General Fund.

Update on the Local Government Settlement for 2026/27

Taryn Eves provided a verbal update on the Local Government Settlement for 2026/27. The provisional settlement, published on 17 December, indicated a £49.7m increase in Core Spending Power (CSP) over three years, largely driven by assumed Council Tax increases of 4.99%. However, the increase in grants was only £17.8m over three years, with just under £8m in 2026/27. A significant discrepancy was noted between the government's assumption of Haringey's Council Tax collection rate (£151m) and the council's internal estimate (£145m), attributed to higher levels of Council Tax discount and exemption in Haringey. The committee expressed concerns about the increased reliance on Exceptional Financial Support (EFS) and its impact on interest costs and Minimum Revenue Provision (MRP). They recommended that future budget reports provide more up-to-date details on the council's overall debt levels and that the process for providing key information to the committee be reviewed.

Treasury Management Strategy Statement 2026/27

The committee scrutinised the draft Treasury Management Strategy Statement (TMSS) for 2026/27. Concerns were raised about the sustainability of proposed borrowing levels, particularly the significant increase in debt servicing costs across the MTFS period. Officers acknowledged that the overall level of debt was unsustainable and higher than in neighbouring boroughs, but explained that the HRA's investment in new builds and refurbishment generated additional revenue. The committee recommended that future reports provide greater clarity on the differences between HRA and General Fund accounting rules and the markers for each fund. They also sought assurances regarding the governance arrangements for a substantial increase in borrowing and requested an update on the implementation of the divestment policy.

The Overview and Scrutiny Committee met on Monday 19 January 2026 to discuss several key items. The meeting began with the usual formalities, including noting filming at meetings, apologies for absence, urgent business, and declarations of interest. The minutes of previous meetings held on 27 November 2025 and 10 December 2025 were agreed as accurate. The committee also received and noted the minutes of various Scrutiny Panel meetings held in November 2025.

A significant portion of the meeting was dedicated to the Scrutiny of the 2026/27 Draft Budget and Medium-Term Financial Strategy 2026/2031. This involved ratifying recommendations arising from the Scrutiny Panels. The committee also received a verbal update on the Local Government Settlement for 2026/27 from the Director of Finance. Additionally, the committee received and made comments on the draft Treasury Management Strategy Statement 2026/27.

The meeting concluded with the setting of dates for future meetings.

The following documents were made available for the Overview and Scrutiny Committee meeting on 19 January 2026:

• Public reports pack 19th-Jan-2026 18.30 Overview and Scrutiny Committee.pdf: This is the main reports pack for the meeting.
• Supplementary 19th-Jan-2026 18.30 Overview and Scrutiny Committee.pdf: This document contains supplementary information for the meeting.
• Minutes HRDSP 15 Dec 2025.pdf: Minutes from the Housing, Planning and Development Scrutiny Panel meeting on 15 December 2025.
• 2627_TMSSOverviewandScrutinyCover FINAL V3a.pdf: A cover report for the draft Treasury Management Strategy Statement 2026/27, specifically for the Overview and Scrutiny Committee.
• 2627TMSSV2ADRAFTJL TE FINAL V4.pdf: The draft Treasury Management Strategy Statement 2026/27.
• LateBusinessSheet_Draft TMSS 202627.pdf: A sheet detailing late business items related to the draft Treasury Management Strategy Statement 2026/27.
• Printed minutes 19th-Jan-2026 18.30 Overview and Scrutiny Committee.pdf: The official printed minutes of the Overview and Scrutiny Committee meeting held on 19 January 2026.
• Agenda frontsheet 19th-Jan-2026 18.30 Overview and Scrutiny Committee.pdf: The agenda frontsheet for the Overview and Scrutiny Committee meeting on 19 January 2026.

The Overview and Scrutiny Committee met on Monday 19 January 2026 to scrutinise the council's draft budget and Medium-Term Financial Strategy (MTFS) for 2026/27 to 2030/31. The committee also reviewed the draft Treasury Management Strategy Statement (TMSS) for 2026/27 and received an update on the Local Government Settlement for 2026/27.

The committee expressed significant concerns about the council's financial sustainability, particularly the structural issues with local government funding and the increasing reliance on Exceptional Financial Support (EFS). Councillor Matt White, Chair of the Committee, argued that the council's statutory responsibilities could not be met without increased funding or fundamental changes to service delivery. Taryn Eves, Corporate Director of Finance and Resources, acknowledged the challenging figures and the need for transformation, stating that the council was doing everything possible to minimise reliance on EFS. The committee recommended that budget reports should accurately reflect these structural financial issues and make clear that the situation was unsustainable without increased local government funding or fundamental changes to services.

During the scrutiny of the draft budget and MTFS, the committee reviewed recommendations from various Scrutiny Panels. Concerns were raised about the cumulative projected budget gap of £192.5m over the MTFS period and the significant annual interest charges from EFS. The committee requested more detailed information on the long-term sustainability of these interest payments and capital repayments. They also noted ongoing risks related to rising costs from service providers in adult social care and highlighted concerns about procurement processes. Recommendations were made for further monitoring of procurement, void property performance, and the sustainability of long-term borrowing costs within the Housing Revenue Account (HRA). The committee also welcomed proposals for digital improvements and invest-to-save measures, such as increased foster carer allowances and accommodation for care leavers.

In relation to the Local Government Settlement for 2026/27, Taryn Eves provided an update indicating a £49.7m increase in Core Spending Power over three years, largely due to assumed Council Tax increases. However, the increase in grants was significantly lower, and a discrepancy was noted between government assumptions and the council's estimates for Council Tax collection rates. The committee expressed concerns about the increased reliance on EFS and its impact on interest costs.

The committee also scrutinised the draft Treasury Management Strategy Statement (TMSS) for 2026/27, noting the significant increase in debt servicing costs. They requested greater clarity on the differences between HRA and General Fund accounting rules and the markers for each fund. Assurances were sought regarding governance arrangements for increased borrowing and an update on the implementation of the divestment policy was requested.

The committee made several recommendations, including that budget reports should accurately reflect the structural financial issues faced by the council, that more detailed information on EFS interest payments and capital repayments be provided, and that future reports include up-to-date details on the council's overall debt levels. They also recommended further monitoring of procurement processes, void property performance, and the sustainability of borrowing costs.