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I think most of it is very predictable - you (the London Borough of Haringey) promised us we could make millions and now you say we can't, it's not fair we want our money back and lot more besides. Watch out, we'll be pinging some judicial reviews your way.
What makes the letter interesting to me is the use of underlining, for instance:
Try reading "procedurally unfair" out loud in an Australian accent to gauge the true threat being offered here.
While I do find the actual proceedings slightly comical, the outcome could be serious. Haringey might end up in deep financial doo-doos. Northamptonshire county council has
"A government-appointed investigator’s report said the problems at the council [Northamptonshire] were so deep-rooted that it was impossible to rescue it in its current form, and to do so “would be a reward for failure”.
Perhaps it could happen in Haringey - the new lot are throwing away the efforts of years of detailed, and some would say unprincipled , and certainly unpopular planning, to replace it with who knows what.
Many Thanks to Joe Goldberg for bringing this to my attention