Brent Council is grappling with a £30 million budget shortfall over the next three years, driven in part by rising homelessness costs, according to reports presented at a recent Cabinet meeting. The council is also facing pressures in adult social care and children's services. To address this shortfall, the council is transforming how we deliver services, support residents and manage resources to meet the challenges ahead .

The cabinet reviewed the 2024/25 financial outturn, detailed in the Financial Outturn Report 2024-25, which showed a balanced general fund but a £15.5 million overspend across all services, primarily due to escalating homelessness expenses. Despite implementing robust spending controls that saved £8.6 million, the council had to dip into its reserves to cover the overspend.

Councillor Fleur Donnelly-Jackson, Cabinet Member for Housing, acknowledged the stark statistics surrounding homelessness and the necessity of exploring all available funding options. The council is increasing the housing needs and support budget by £14 million and investing in additional housing supply through IFRB and the Local Authority Housing Fund. Councillor Gwen Grahl, Cabinet Member for Children, Young People & Schools, highlighted the council's commitment to delivering 1,700 genuine council homes by 2028 and advocated for citywide rent stabilisation policies.

The Medium Term Financial Outlook report, available as Medium Term Financial Outlook, outlined the financial challenges facing Brent, including the £30 million budget gap over the next three years. It emphasized that without a fundamental rethink of local government funding, councils like Brent will continue to face unsustainable choices. Councillor Butt stated that we will continue to fight for a fairer future for our residents and our communities, for our local government as a whole.

Adding to the financial strain, the Quarter One Financial Forecast for 2025/26, outlined in the Q1 25-26 Financial Report, projects a break-even scenario but highlights significant risks. Demand for homelessness services remains high, driven by escalating costs, rising demand, declining affordable housing supply, and an 8.4% rise in average private rents in London over the past year. The report stressed the need for the council to make prudent choices to effectively serve its residents.