THE government has announced a major funding boost for Enfield, Barnet and Haringey councils over the next three years reports the Local Democracy Reporter.
Following the conclusion of the government’s Fair Funding Review 2.0, which sought to rebalance funding allocations based on recent deprivation data, Enfield Council will gain £203.1million more in ‘core spending power’ over the next three years, an increase of 58% – the highest percentage rise in London.
Barnet Council will also receive an additional £112.4m (+30%), and Haringey Council is benefiting by £75.6m (+23%).
All three councils have been urging the government over the last couple of years to update its funding system.
The Labour government said its new Local Government Funding Settlement had now rebalanced council funding in London based on need, enabling councils to better provide statutory services.
Secretary of State for Housing, Communities and Local Government Steve Reed said: “This is a chance to turn the page on a decade of cuts, and for local leaders to invest in getting back what has been lost – to bring back libraries, youth services, clean streets, and community hubs.
“We’re making sure every community has the funding they need to succeed.”
Previously councils relied on council tax rises of up to 5% to increase spending power, with only very small rises in grant funding offered in recent years.
In Enfield, the council’s perilious financial situation recently led to auditors staging an intervention aimed at reducing debt levels that are forecast to rise to £1.5bn by early next year.
But now Enfield Council looks set to balance its 2026/27 budget using the first part of its three-year cash injection.
Leader Ergin Erbil said: “This is very good news for Enfield. We have always argued for fair funding, and I am pleased that our efforts have helped secure extra money for our borough. The government estimates that over this parliament, Enfield’s spending power is set to rise by £203million between 2024 and 2028.
“This will not immediately undo the damage caused by years of underfunding. We are still under pressure in areas like adult social care, children’s services and temporary housing. But a fairer system gives us the chance to invest in better services and make Enfield a cleaner, safer and fairer place to live.”
Haringey Council leader Peray Ahmet welcomed the £75m increase for her borough, saying the government had recognised London’s housing costs and “more accurately” reflected local “high deprivation levels”.
Cllr Ahmet said: “The government was never going to be able to reverse over a decade of austerity overnight. Rapidly increasing demand and costs for key services alongside substantially lower funding per person than the national average means we – in common with councils across England – are still facing extreme budget pressures.
“We will carry on making the case to the government for the long-term reform in areas like social care and housing that is so desperately needed so that we can continue to deliver for the residents and businesses in Haringey.”
As of this year Haringey Council had been operating with around £143m less in core government funding (in real terms) than it did in 2010 – a 55% drop.
In November, the council predicted an “at least £57m” shortfall for its 2026/27 budget. The government granted Haringey £37m in exceptional financial support (EFS) for this current financial year, but the borough has confirmed it will again, despite the changes, require EFS for 2026/27.
Barnet Council last week confirmed it would be asking central government for £88m in EFS for 2026/27 to close its budget gap. Last year the council applied for £55.7m.
