Barnet Council is seeking to implement a tax hike to address a projected budget shortfall of £113.5 million for the 2027/28 financial year. The council's Cabinet met on Monday, October 12, 2026, to discuss its financial sustainability plan and medium-term financial strategy. Councillor Simon Radford, Cabinet Member for Financial Sustainability, presented a plan outlining the council's strategy to tackle a projected budget gap of £198 million by 2029/30.
The plan aims to achieve a balanced budget by March 2029 and establish a sustainable capability to manage future financial challenges. Key strategies include prevention, progression, productivity, service and asset review, and income generation. The Medium Term Financial Strategy (MTFS) for 2027-2032 highlights a significant budget gap, projected to reach £113.5 million in 2027/28. This gap is driven by increasing demand in social care and homelessness, as well as financing costs for Exceptional Financial Support (EFS).
The council is seeking permission from the government to increase council tax above referendum limits. Discussions with the Ministry of Housing, Communities and Local Government (MHCLG) are ongoing, with decisions on potential council tax increases unlikely to be known until late 2026 or early 2027. The council is also awaiting clarification from MHCLG on the process for EFS applications for 2027/28.
Barnet Council has not yet proposed a specific council tax increase percentage to the government. Councillor Simon Radford stated, We haven't passed an amount. We've asked for permission to raise it above that.
While Councillor Peter Zinkin mentioned a potential increase of around £8 a week for Band D properties, equating to £400 a year, this is not a formal proposal. The exact figure remains under discussion and is contingent on government approval.
If the government does not grant permission for Barnet Council to increase council tax above referendum limits, the council has stated it will present a balanced budget. It will mean more difficult decisions, but there will be a balanced budget.
The 'Our Plan for Financial Sustainability 2026-2029' outlines specific measures to close the budget gap:
- Prevention: This strategy focuses on reducing the likelihood, severity, escalation, or recurrence of need before residents require ongoing council services. It includes activities that address the causes of future need and help residents maintain independence. An example is
Employment support for residents facing financial insecurity, to build resilience and improve employment opportunities, reducing the likelihood that needs escalate into ongoing statutory support.
- Progression: This aims to reduce the duration and intensity of support once residents are receiving services, helping them regain or maintain independence and reducing long-term reliance. An example is
An independence programme for children with disabilities, building skills for adult life and reducing future reliance on intensive support.
- Productivity: This focuses on reducing service delivery costs while improving quality and responsiveness. It involves using procurement, commissioning, technology, automation, and process improvement to manage inflationary and market pressures and free up staff for higher-value work. An example is
End-to-end reviews of service processes to improve efficiency.
- Service and Asset Review: This ensures the council's resources and assets are focused where they deliver the greatest impact. It includes reducing costs, generating income, and reducing borrowing. An example is
Use the Strategic Asset Management plan to identify disposals, reduce holding costs and generate capital receipts that lower borrowing costs.
- Income: This strategy focuses on increasing recurring revenue through council tax, fees, charges, commercial opportunities, external funding, and other sources. An example is
More targeted debt recovery and collection activity.
These strategies are supported by enabling blocks: Prediction, Change Management, and Sound Financial Governance. The 'Our Plan for Financial Sustainability 2026-2029' aims to achieve a balanced budget by March 2029, with the MTFS covering the period 2027-2032. The plan indicates that during 2026/2027, the council will focus on delivering and realising benefits from in-flight portfolio opportunities, developing further opportunities, updating assessed values, and increasing recurring financial benefits.
The most significant pressures contributing to the budget gap are seen in social care services, driven by increasing demand and rising costs, and addressing homelessness. The shortfall is also exacerbated by housing benefit rates not being updated since 2011 and the financing costs of EFS.
The Cabinet noted the refreshed MTFS, its alignment with the Financial Sustainability Plan, and ongoing conversations with MHCLG regarding EFS and potential council tax increases. The meeting details can be found in the Public reports pack for the Cabinet meeting on 12th October 2026.