Barnet’s Cabinet will discuss options to plot a course to financial sustainability in the face of a ‘perfect storm’ that has unleashed a projected £29 million funding gap when it meets next week (5 December 2024).

Cabinet Members and council officers have been working to address and contain the unprecedented pressures on the council’s finances, driven by conditions beyond the council’s control. These include:

• A 50 per cent reduction in central government funding since 2010
• A rapid increase in residents requesting emergency temporary accommodation and the increase in costs of providing such accommodation
• An exponential increase in demand and costs for children’s and adults’ social care

These pressures are driving the council’s finances to breaking point.

Measures to take on the crisis have already been put in place such as cutting back-office functions and freezing non-essential services, while protecting sensitive frontline services to vulnerable residents and universal provision such as road maintenance.

Cabinet Members will also review proposals to increase income through fees and charges, and to consult with residents on a 4.98% increase in Council Tax for the new financial year, which is lower than the maximum allowed.

Further actions in the council’s plan include an external review of budgets and speaking to central government about how they might help, including consideration of Exceptional Financial Support if needed.

Barnet Council’s Leader Cllr Barry Rawlings said: “We are a well-run council and run a tight ship, but like other councils we find ourselves caught in the perfect storm caused by the legacy of decades of austerity funding cuts that have more than halved our budget, increasing demand for complex services and a financial climate that is driving up the cost of providing them.

“These are conditions outside of our control, but we are taking the tough decisions to shield residents from the impact as much as possible.

“This means protecting essential services we’re legally required to, especially for vulnerable residents, as well as continuing to deliver on residents’ priorities in our shared vision for Barnet.

“It will mean reducing some services and delaying some projects. Some of the fees and charges levied for extra services are also likely to increase. We’re faced with extremely difficult choices, and we will carefully weigh up all options in consultation with residents.

“We are also speaking to the Government about the ongoing pressures local government faces, our own budget position and how they may be able to help with our plan for financial sustainability through Exceptional Financial Support.”

The detailed plans for how the council will balance its budget for 2025-26 will be presented to Cabinet for approval in February.

The council remains committed to long-term projects including building new social housing and highways maintenance, continuing.

Funding for the creation of 1,000 new council homes by 2026 and the £97m committed to upgrading the borough’s roads and pavements are sourced separately from the funding for the council’s core services.

Residents will also have the opportunity to have their say on the council’s proposals for bridging next year’s funding gap and where savings can be most effectively made.

Read the Cabinet report: Agenda for Cabinet on Thursday 5th December, 2024, 7.00 pmExternal link