Barnet Council Warns of £200 Million Budget Gap as Service Changes Considered

The north London authority says growing demand for social care and temporary accommodation has placed substantial pressure on its finances.

Its proposed financial sustainability plan sets out how the council could increase income, control expenditure and reduce its reliance on emergency financial support.

However, residents could face changes to local services and council tax as the authority attempts to balance its books.

What has caused the financial pressure?

Barnet says demand for adult and children's social care has increased significantly, alongside the cost of providing temporary accommodation for households facing homelessness.

The council's annual budget is approximately £544 million, with adult social care now accounting for around a third of expenditure.

Barnet also has an older population than other London boroughs, with approximately 57,000 residents aged over 65.

The authority says inflation and long-term reductions in central government funding have contributed to its difficulties.

What changes are being considered?

The council's recovery plan outlines several possible measures.

These include increasing income, reducing the cost of delivering services and considering changes to the way certain local services operate.

Recommendations being examined include council tax adjustments and alternative waste collection arrangements.

Barnet argues that its existing council tax level is substantially below the level assumed by the government when calculating local authority resources.

The authority estimates that this creates an annual difference of approximately £74 million between what it raises and the income assumed within the funding system.

Has the council received emergency financial help?

Barnet says it has applied for approximately £135 million in Exceptional Financial Support over the past two financial years.

Such support can allow councils to use financial flexibility while addressing budget pressures, but does not remove the underlying need for long-term savings or income increases.

The council says it has already reduced its requirement for additional support by £10 million.

What happens next?

The financial plan is scheduled for scrutiny on 8 October, followed by Cabinet consideration on 12 October.

The council has also opened public engagement opportunities so residents can comment before major decisions are taken.

No final decisions on individual service changes or future council tax increases had been made when the plan was published.

The financial challenge illustrates the difficult balance facing local authorities: protecting essential services while meeting legal requirements to produce balanced budgets.

Keep Updated UK will follow the proposed changes and examine their potential impact on households, public services and local taxpayers.