Barking and Dagenham Council is proposing a 4.99% council tax increase and will consult with residents on the decision.

The proposed increase, comprised of a 2.99% general council tax increase and a 2% adult social care precept, was discussed at a Cabinet meeting on 9 December 2025, where the Cabinet approved a draft budget strategy for 2026/27 to 2030/31, which will now be subject to public consultation.

According to the Public reports pack Tuesday 09-Dec-2025 19.00 Cabinet.pdf, the council faces a revised budget gap of £21.8 million for 2026/27, increasing to £49.9 million by 2030/31. The report for the Draft Budget Strategy 2026/27 - 2030/31 also mentions a pressure of £7.4m is forecast in adults and children's social care services at Quarter 2.

The council's advisors, LG Futures, have been used to forecast core funding levels arising from the Local Government Finance Settlement, and these assumptions have been updated to reflect the anticipated impact of the Fair Funding Review 2.0 (FFR 2.0). The Draft Budget Strategy 2026/27 - 2030/31 report states that the council will not know details of allocations until the Provisional Local Government Finance Settlement, which is due mid-to-late December.

Aerial view of a residential area in Barking and Dagenham.
Aerial view of a residential area in Barking and Dagenham.

The implications of FFR 2.0 are based on a series of modelling assumptions that remain provisional and cannot be fully validated until the Government publishes the detailed formulae used to calculate individual authority allocations within the Local Government Finance Settlement, according to the Draft Budget Strategy 2026/27 - 2030/31 report. Until these formulae are released, there remains a degree of uncertainty around how funding will be distributed, particularly in relation to key variables such as relative needs, resource assessments, and service-specific weightings.

Councillor Dominic Twomey, Leader of the Council, noted in the meeting's transcript that every 1% of council tax brings in just shy of £1 million , highlighting the difficult decisions the council faces.

The Cabinet also reviewed the council's reserve position, with usable earmarked reserves having increased from £26.8m at the start of 2024/25 to £46.9m in 2025/26. Within this, the Budget Support Reserve has increased from £15.4m to £32m. The Draft Budget Strategy 2026/27 - 2030/31 report notes that the Budget Support Reserve was established to smooth the delivery of savings.

The report included a summary of savings and growth proposals identified by strategic directors, including new growth needs totalling £23.1m and proposed savings amounting to £1.9m.

The consultation will begin on 10 December 2025, with an online portal for residents to provide their views. The Draft Budget Strategy 2026/27 - 2030/31 report outlines the consultation process, which includes:

  • An online budget consultation which will commence on 10 December 2025 and conclude on 9 January 2026.
  • A Budget consultation Facebook Live with the Leader will take place on Tuesday 16 December 2025 (6pm to 7pm).
  • An in-person consultation event with the local business community will take place on Wednesday 7 January 2026 (10am to 1pm, venue tbc).
  • An in-person consultation event with Chadwell Heath Residents Association will take place on Thursday 8 January (7:30pm) and with Becontree Residents Association on Thursday 29 January 2026 (7pm).