Barnet (Parliament Politics Magazine) – Barnet Council leader commits to balancing the budget amid challenging financial conditions, assuring residents of fiscal responsibility and stability.
Barry Rawlings made the pledge in response to Peter Zinkin, the chairman of an opposition group, who said at yesterday’s (Tuesday, the 18th) cabinet meeting that the council’s budget papers only conveyed “part of the story.”
Cllr Rawlings stated in his New Year’s speech that the council had anticipated a £52 million budget deficit for 2025–2026; however, the actual amount is now closer to £55 million.
Will Barnet Council receive the additional £59 million in financial support to tackle its budget challenges?
The council has asked the government to help access an additional £59 million of exceptional financial support (EFS) on top of the £23.5 million in anticipated reductions, which includes both spending cutbacks and income-raising measures.
By the end of February, the council will be able to determine whether the EFS support has been approved.
According to Simon Radford, the council’s new finance cabinet member, the council has been “plotting a course through the current challenges.”
Speaking on the fragile financial position, Cllr Zinkin told Hendon Town Hall: “There is nothing in this document to indicate where that £55m is coming from and I agree if the government gives us money, or if you find a way, that will be wonderful.”
The council’s budget planning and procedures need to be strengthened even further, frontline services need to be protected and a growth plan should be invested in, and the new Labour government has to be consulted on ways to address medium- and long-term budget issues, including the use of EFS.
Council leader Cllr Rawlings said:
“We’re quite determined, we will have a balanced budget every year, not just because you have to legally but because that’s the sensible and rational way of being in administration.
We have a plan of how to get there and we’re determined to get there and we’re more optimistic. We’ll get through this difficult financial situation, and as a result of that Barnet will be a better place for its residents.”
Ross Houston, a cabinet member, mentioned the “unprecedented increase” in the number of students with education, health, and care plans (EHCPs) when discussing demand-led pressures.
The number of students with EHCPs climbed by 120% between 2015 and 2024, according to Cllr. Radford, who also noted that this increase was “significantly higher” than the borough’s student population growth, which was slightly over 10%.
Although he acknowledged that it was a “challenge” financially, he said that Barnet was “famous” for its schools and that the council should be “very proud” of its special educational needs and disability (Send) service because it was a factor in people moving to and remaining in the borough.
Regarding the cost of temporary housing, another demand-driven pressure, the new finance chief stated that the council received “more than double” as many applications for homeless assistance in the first quarter of 2024 compared to the same period two years prior.
According to Cllr. Radford, housing homeless families, cost about £7 million in the first quarter and £8 million in the second. “Barnet has the sixth-smallest stock of social housing in London,” he noted.
Criticising the previous Conservative government, he added:
“We’ve inherited a council with real financial fragility. With all these statistics going in one direction, we did have a period where the sun was shining and we could have mended the roof and we didn’t do any of that.
Now it’s up to us [Labour] to fix the leak.”
How did the Barnet council respond to this balancing budget?
The council is seeking input from locals on ideas to reduce costs, stressing openness and community participation in financial planning.
Barnet Council is investigating ideas to raise revenue through fees and levies in addition to a 4.98% increase in council tax for April 2025 in order to help reduce the budget deficit.
The council intends to preserve statutory and vital services while restructuring or cutting back on some frontline services. This strategy seeks to preserve essential services in spite of budgetary limitations.
In the medium term, Cllr Rawlings emphasized the need for the council to become more financially independent and sustainable, signaling a strategic shift towards efficient cost management and income generation maximization.