Despite already finding £23 million in efficiency savings for the next financial year, the council was facing a £56 million funding gap due to the unprecedented financial crisis
Barnet Council’s proposed budget for the financial year 2025-26 was approved at a meeting of the Full Council. The council is legally required to set a balanced budget, and this year’s budget includes a general Council Tax increase of 2.98% plus an Adult Social Care precept increase of 2%. Despite these increases, Barnet maintains a Council Tax lower than any neighbouring boroughs.
Budget approval comes when the council is under significant financial strain. Despite already finding £23 million in efficiency savings for the next financial year, the council faced a £56 million funding gap due to the unprecedented financial crisis facing local government. Last month, the council received confirmation that the government approved its application for ‘exceptional financial support’ of £55.7 million to help bridge the funding gap through borrowing or asset sales.
Council finances have been stretched by substantial service cost increases and demands, particularly for complex and expensive services that the council is legally obligated to provide. These include adults and children’s social care and temporary accommodation for homeless families in the borough.
Barry Rawlings, Leader of Barnet Council, acknowledged the difficulty of setting the budget amidst such challenging circumstances. “Setting a budget has been extremely difficult as we have faced very tough choices,” he said. “We are facing an unprecedented crisis in financing our services, driven by a perfect storm of a decade of funding cuts from central government, high interest rates making services more expensive to deliver, and ever-increasing demand.”
Setting a budget has been extremely difficult as we have faced tough choices. We are facing an unprecedented crisis in financing our services, driven by a perfect storm of a decade of funding cuts from central government, high interest rates making services more expensive to deliver, and ever-increasing demand.
Barry Rawlings, Leader of Barnet Council
The approved budget includes a 4.98% increase in residents’ bills this year due to the combined Council Tax and Adult Social Care precept increases. However, Barnet Council remains committed to lowering its Council Tax than any of its neighbouring boroughs. This decision aims to help families manage their household bills and positions Barnet as one of only a few London boroughs that have kept the increase below the legal maximum.
Rawlings emphasised that the exceptional financial support received from the government is only a temporary solution. “We still have some difficult decisions in the months ahead,” he said. “We will regularly engage with residents to understand what is most important to you so we can reshape services to focus on those things and deliver them even more cost-effectively.”
In spite of the council already finding £23m of efficiency savings for the next financial year, the council was facing a £56m funding gap because of the unprecedented financial crisis facing local government
The council’s approach to budgeting reflects a balance between addressing immediate financial needs and ensuring long-term sustainability. Barnet Council aims to navigate the current financial challenges while continuing to provide essential services to its community by maintaining a lower Council Tax than neighbouring boroughs and seeking resident input.
As the council moves forward, it will monitor its financial situation closely and explore additional avenues for efficiency and cost savings. The engagement with residents will play a crucial role in shaping future budget decisions and ensuring that the council’s resources are allocated to best serve the community’s needs.
The approval of Barnet Council’s budget for the financial year 2025-26 marks a significant step in addressing the current financial challenges. While the council faces tough choices and a substantial funding gap, its commitment to maintaining lower Council Tax rates and engaging with residents underscores its dedication to delivering essential services effectively and efficiently.
