Brent Council is facing a projected £18.3 million overspend for the 2025-26 financial year, primarily driven by significant pressures in adult social care and homelessness services. The council's Cabinet noted the financial outturn report for the period, which detailed the General Fund overspend.
Despite these challenges, the council reported a reduction in historic debt by £23.7 million and improvements in council tax and business rates collection. However, underlying pressures remain a serious concern.
Adult social care recorded a £7 million overspend due to increasing demand and complexity of needs. This is attributed to more older people requiring care, the increasing complexity of needs among those seeking support, and rising costs for home care, residential care, and nursing placements in a challenging market. Housing needs and support services also saw an £11.7 million overspend, with Brent receiving nearly 8,800 homelessness applications – a 40% increase compared to the previous year. This surge is driven by a London housing market that is becoming unaffordable, rising private rents, and a care market whose costs outstrip available funding.
Councillor Gwen Grahl, Cabinet Member for Finance and Resources, acknowledged the demanding nature of the year but highlighted progress in debt reduction and collection rates. The figures reinforced the need for strong financial control, good quality forecasting, and the full delivery of agreed savings and mitigations,
she stated. The council plans to implement £10.4 million of agreed savings, focusing on inter-departmental collaboration, improved productivity, better use of technology, and identifying new income streams, rather than simple service cuts. This approach aims for a more sustainable operational change with less impact on service delivery.
Looking ahead to the 2026-27 financial year, the Quarter 1 financial forecast indicates a projected £9.5 million General Fund overspend, concentrated in homelessness and temporary accommodation. Mitigation strategies are being implemented, including building new homes, reducing reliance on expensive temporary accommodation, and regulating private sector housing. The council anticipates 406 new social homes becoming available and has already moved 89 households out of costly temporary accommodation, using new council homes for those in greatest need. A firm grip on spending throughout the year is also a key strategy.
The council's strategy for managing ongoing financial pressures involves honesty about the financial position, a disciplined response, and relentless protection of essential services. This includes improved forecasting and control, full delivery of savings and mitigations, and addressing root causes. The council also calls for better action from central government, hoping for multi-year financial settlements and increased funding for homelessness, adult social care, and SEND services. The strategy also encompasses redesigning services through investment in prevention, technology, productivity improvements, strengthened commissioning, and income generation.
The Dedicated Schools Grant is also forecasting an £18.2 million deficit for 2026-27.
Further details on the council's financial reports can be found in the Public reports pack for the Cabinet meeting on Monday 27 July 2026.
