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17.12.07
Local Lib Dems have uncovered an alarming 'black hole' in Haringey Council's finances, which would hit residents with significant cuts in services or rises in Council Tax next year.
The £6 million funding gap, estimated as a further £60 increase in Council Tax per household, was revealed at meetings of Haringey Council's 'watchdog' Overview and Scrutiny Committee on Tuesday and Thursday last week.
Cllr Robert Gorrie, Lib Dem Finance spokesperson, says that the Labour Council's £2 million efficiency savings, identified last year, have not been delivered and Haringey Council is currently overspending by £3million. The Council has also failed to remedy a £2 million shortfall in next year's savings. Furthermore, and despite persistent requests from Cllr Gorrie, Haringey Council has failed to show how they plan to make a further savings next year under the 'achieving excellence' programme except that this will only achieve £1million reduction in cost - leaving another £2 million funding gap.
Cllr Robert Gorrie, Lib Dem Finance Spokesperson, comments:
"How can Haringey residents have confidence in the people running their council when they can't get the figures right? The Council's failure to make efficiency savings this year is going to have a direct impact on Council Tax bills. It is Haringey's residents that will bare the brunt of the inability of the Council to balance the books."
Despite a proposed £3 million increase in Council Tax next April and rises in charges for leisure facilities, parking and the crematorium, Labour-run Haringey Council has thus far failed to balance the books.
Lib Dems also fear that the unfolding financial disaster at Ally Pally, where Labour bosses have allowed the development partner, Firoka, to pocket the Pally's profits for months, is another blank cheque that will end up hitting residents' pocket's hard.
Cllr Neil Williams, Leader of the Lib Dem Opposition, adds:
"Over the past ten years Council Tax in Haringey has doubled and residents face another swingeing increase this year. It is pensioners that will have to pay for Labour's blunders. It shows that Labour cannot be trusted with running an effective budget and high time that this unfair tax is scrapped."
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