Haringey Council will be forced to use some of its reserves to plug a £16 million budget gap due to a failure to make planned savings.
The council will use £7.5 million from reserves to make up the deficit, which is mainly caused by higher-than-expected spending on children’s and adults’ services.
But it will still be left with a £6 million overspend in its general fund at the end of the current financial year and will have to look for other ways of making savings in order to balance its books.
Are these 'reserves' accumulated underspends from previous years or funds set aside to meet future liabilities (such as employee pensions)?
Apparently it comes from the Budget Resilience Reserve. I can't tell you any more than that.
Which fits in nicely with this; Ejifor Raises Prospect of Big Council Tax Increase of 6%
£8.7m has already been committed from reserves for 2017/18 so it would more from the same dwindling pot.