Auditor Sounds Alarm Over Enfield Council's Finances
An external auditor has issued a stark statutory warning to Enfield Council, urging immediate action to manage its soaring debt levels, which currently stand at a staggering £1.286 billion. During a full council meeting on Wednesday, November 12, Paul Dossett, a partner at the audit firm Grant Thornton, informed councillors that his company had identified issues of profound "significance" with the local authority's financial health.
The Scale of the Debt and Financial Risk
The council's debt is not only substantial but is projected to grow, with forecasts indicating it could reach £1.5 billion by the end of the current financial year. The annual cost of servicing this debt—covering both repayments and interest—is currently £31.4 million. This figure is expected to balloon to £35.4 million in 2026/27 and a further £39.4 million in 2027/28, money that is consequently unavailable for essential public services.
Compounding the problem, the council's financial safety net is inadequate. Its risk reserves, at £32 million, have dropped below the council's own minimum safety threshold of £43 million, leaving it exposed to potential financial shocks.
The auditor's report specifically highlighted the need to prioritise reducing the financial risk associated with several major council ventures. These include the flagship Meridian Water housing development and the council-owned companies Energetik and Housing Gateway.
Political Fallout and Council Debate
The revelations sparked a heated political debate within the council chamber. James Hockney, the opposition Conservative group's shadow finance councillor, stated that the auditor's findings vindicated their long-standing concerns about unsustainable debt levels.
Conservative councillors Lee Chamberlain and Maria Alexandrou criticised the ruling Labour administration's financial strategy. Cllr Alexandrou accused Labour of embarking on a "spending spree with no thought for the consequences," suggesting "bust" was a more appropriate term than the administration's frequent use of "robust" to describe its finances.
In response, Labour councillor Josh Abey defended the administration's record, pointing to external economic pressures, including a "certain mini budget" that he said crashed the economy. He argued that despite this "economic adversity," the council had continued to invest in the borough.
Following the debate, Labour councillors voted in support of the report’s recommendations, while the Conservatives abstained.
