Enfield Council gains £30m to combat overspending and safeguard future budgets. Vote on budget soon.
The council will use the money. £20 million covers current overspending. £10 million helps with next year’s budget. Councilors will vote on the budget soon.
Enfield is one of many councils helped. The government’s support aims to prevent bankruptcy. This aid started in 2020. More councils need help this year.
The new government plans to fix funding by 2026. Enfield will repay the £30 million. They will use capital receipts to do so.
Council leader Ergin Erbil welcomed the funds. He blamed past cuts for funding problems. He stated they will balance the budget still. Tax increases will stay below 5%.
The funding lets them use their own money. This creates a safety net for risks. He is happy the new government is helping. They aim to protect communities with the funds.
Enfield asked for the money in January. They needed it to cover spending. They still must use £5 million of reserves. Rising costs caused the overspending. This includes temporary housing and care.
Erbil wants to fix unfair funding. The Institute of Fiscal Studies agrees. They say Enfield’s funding is the seventh-worst.
The opposition party is concerned. They point to Enfield’s large debt. It is around £1.25 billion total.
James Hockney spoke about the crisis. He cited debt and wasteful spending as issues. He added that government cuts contribute too.
Hockney noted a funding rise of only 1.45%. The prior government had given 5.3%. Enfield has made £243 million in cuts since 2010. Their spending has nearly halved.