Harrow Council has defended its latest budget after a report from the National Audit Office (NAO) suggested that the financial health of local authorities is getting worse.

The report pointed to the fact that many are relying on their savings to fund local services and are overspending on services in general.

It referenced the situation at Northamptonshire County Council, which imposed strict in-year spending controls as it is at risk of unlawfully outspending its available resources.

Cllr Sachin Shah, leader of Harrow Council, said he would not allow Harrow to fall into a similar situation.

“I take being careful with your money very seriously. Reserves are for emergencies. That’s why we are cutting our cloth to what we’ve got. The funding crisis facing us, and other councils, is a national disgrace – but we are coping,” he said.

“We are making hard choices every day. Other councils have slashed vital services to the bone, hurting the very residents who need them most.

“We believe Harrow people want to care for the vulnerable and make our borough clean – and we will continue to devote our efforts to those causes, within our means.”

The NAO explained that a higher demand for social care has forced councils to devote much of their money towards this.

In its latest budget, Harrow Council pledged £9 million to such causes - £3 million to children’s services and £6 million to adults and social care.

To cope with the increased demand, it imposed a 0.5 per cent precept to this year’s council tax bill. This was in addition to the 2.99 per cent increase in council tax agreed last month.

Cllr Adam Swersky, responsible for finance at Harrow Council, said the “brutal scale” of funding cuts from central government had made things difficult for local authorities across the country.

According to the NAO, higher demands and cost pressures have been greatly affected by cuts of nearly 50 per cent since 2010-11.

Mr Swersky described it as a “vendetta” against councils and thanked everyone in the borough for their sacrifices in the face of austerity.

But Cllr Barry Macleod-Cullinane, deputy leader of the Conservatives in Harrow, noted that, despite this, Harrow residents have faced the highest level of council tax increase in London since 2014.

He said: “Neighbouring Hillingdon, meanwhile, has frozen its council tax for the tenth year in a row. It faces the same issues but they have managed their budget much, much better.

“There has been a cumulative increase of around £420 to people’s bills – it’s important to manage council tax as it can really hurt everybody.”