Hendon Town Hall
Barnet Council’s proposed budget for the financial year 2025-26 was approved last night (4 March) at a meeting of 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%. Barnet continues to maintain a Council Tax lower than any neighbouring boroughs.
The budget has been set at a period of considerable financial challenge for the council. 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.
Last month, the council received confirmation that the government approved the council’s application for ‘exceptional financial support’ of £55.7m to help plug the funding gap through borrowing or asset sales. Council finances have been stretched by huge service cost rises and demands, especially for complex and expensive services the council has a legal duty to provide such as adults’ and children’s social care, and temporary accommodation for homeless families in the borough.
Cllr Barry Rawlings, Leader of Barnet Council, said:
“Setting a budget has been extremely difficult as we have faced very 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.
“We are raising Council Tax, so residents will see a 4.98% increase in their bills this year. However, we continue to maintain a Council Tax lower than any of our neighbouring boroughs – to help families keep their household bills down and are one of only a few London boroughs who have kept the increase below the legal maximum.
“The exceptional financial support we have received is just a temporary solution. We still have some difficult decisions in the months ahead and 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.”