Barnet Council has secured £55.7 million in government support as part of its financial plans to close the council’s budget gap for the next year
Barnet Council has secured £55.7 million in government support as part of its financial plans to close the council’s budget gap for the next year. The Leader of the Council, Barry Rawlings, received official notice from the Ministry of Housing, Communities & Local Government that the council’s application for ‘exceptional financial support’ had been granted.
In December, Barnet Council submitted an application to the government for £55.7 million to address its projected budget shortfall for the financial year 2025-26. The budget gap is a direct consequence of the unprecedented financial crisis facing local governments across the UK. Despite already identifying £23 million in efficiency savings for the upcoming financial year, the council still faced a significant shortfall.
In December, the council made the application for £55.7m from government to meet its projected budget shortfall of £55.7m for the financial year 2025-26. The gap is a consequence of the unprecedented financial crisis facing all local government, and in spite of the council already finding £23m of efficiency savings for the next financial year.
Barry Rawlings welcomed the news but emphasised that the government support is only a temporary solution. “We’re grateful to the government for granting our application for exceptional financial support to help us close our budget shortfall for the next 12 months,” he said. “We appreciate their understanding of the pressures the sector faces. The support will provide immediate relief as we set a balanced budget and work on plans for a sustainable council given the ongoing demands on our budget.”
Rawlings highlighted the immense financial pressures the council is under. “The pressure on our finances has never been greater,” he explained. “As a council, we face 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 for complex and costly services we have a legal duty to provide, such as adults’ and children’s social care and temporary accommodation.”
We’re grateful to the government for granting our application for exceptional financial support to help us close our budget shortfall for the next 12 months. We appreciate their understanding of the pressures the sector faces. The support will provide immediate relief as we set a balanced budget and work on plans for a sustainable council given the ongoing demands on our budget.
Barry Rawlings, Councillor, Barnet Council
He added that the council will need to repay any portion of the government support it uses in the form of borrowing, which will further stretch budgets. “This is a temporary solution and will mean tough decisions for some time,” he said. “We will be regularly engaging 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.”
The council’s proposed budget for the next financial year, including the rate of Council Tax, will be presented to Full Council for approval on Tuesday, 4 March. The approval process will be crucial in ensuring that the council can continue to provide essential services while managing its financial constraints.
Residents of Barnet can expect to hear more about the council’s plans and how they will impact local services in the coming weeks. The council is committed to transparency and will keep the community informed about the steps it is taking to address the financial challenges it faces.
This government support is a significant step in helping Barnet Council navigate the current financial crisis. However, it is clear that long-term solutions will be needed to ensure the sustainability of local services and the financial health of the council.
