Hendon Town Hall
Barnet Council is to receive £79.6m in government support as part of its financial plans to close the council’s budget gap for the next year.
The Leader of the Council, Cllr Barry Rawlings, received notice on Monday afternoon (23 February) of the decision by the Ministry of Housing, Communities & Local Government that the council’s application for ‘exceptional financial support’ was “approved in principle”. Barnet is one of nine London councils to have its EFS application approved this year. This means a quarter of London boroughs are now receiving additional support from the Government to meet rising demand in services.
The government’s announcement explicitly acknowledges “the challenging financial context for local authorities as they continue to deal with the legacy of the previous flawed system”.
In December, the council made the application to government to meet a projected budget shortfall for the financial year 2026-27. The gap is a consequence of the unprecedented demand for statutory services and financial crisis facing local government, and in spite of the council already finding £9.4m of savings for the next financial year.
Last year, Barnet Council received £55.7m in exceptional financial support.
Cllr Barry Rawlings welcomed the news but cautioned that short-term government support will not address long-term budgetary pressures:
“We are grateful to government for granting our application for exceptional financial support (EFS). The money will enable us to set a balanced budget for the next financial year, meet our legal duties and continue to provide essential frontline services for our most vulnerable residents. The fact that we have been forced once again to apply for EFS speaks of the crisis we, and many local authorities face, in managing ever-growing demand for costly social care.
“The government has recognised this in their decision to grant EFS and acknowledges that reform of an old and outdated system will take time. They have made a welcome start through the multi-year settlement for local government.
“Barnet is a well-run, financially responsible council. We have made £65m in savings over the last three years. However, even this is not enough to cover the surging demand for temporary accommodation, and children’s and adults social care services.
“EFS is effectively a loan. Any portion of the government support we use in the form of borrowing will need to be repaid, which will stretch future budgets. We will continue to focus on delivering our services in the most efficient way possible and invest in prevention to make long-term savings. However, hard decisions for services will also need to be made. We will, of course, continue to engage with residents to prioritise and reshape services to make them ever more cost-effective.”
The council’s proposed budget for the next financial year, including setting the rate of Council Tax, will be presented to Full Council for approval on Thursday 5 March.