Government underfunding means council tax increase, higher council rents and increased charges as Brent Council faces £30m budget gap by 2028-29

 

 

I wrote a while ago that which ever party (or parties) win the May local election in Brent will be faced with a challenging financial situation. They will inherit the 2026-27 budget currently going out to consultation after approval at Monday's Cabinet Meeting.

Although there was plenty of mutual praise anomf Cabinet members there was no disguising the serious financial situation with increasing costs of homelessness accommodation, the Housing Revenue Account  coping with the cost of repairs required by the Social Housing Adjudicator, increasing costs in Adut and Children's Social Care and the soaring demands on the High Needs Grant for children with SEND, In addition 65% of Brent Council maintained schools are forecasting in-year deficits and facing restructures of staff to reduce costs.

 Meanwhile the Labour Government is still to decide the local government funding settlement and the current confusion over the Budget offers little realistic hope. Green MP Carla Denyer said, 'Local councils continue to be underfunded by the UK Government, and I will keep pushing Labour to give them the funding they need.'

The Brent budget gap is due to rise to £30m by 2028-29:

Apart from growth through increased demand there is also the additional inflation cost;

 To bridge the £10.4m 2026-27 budget gap savings/cuts are proposed to be decided at the Budget Setting Meeting in February 2026:

A 4.99% Council tax increase is proposed (2.99% general, 2% social care) and a 4.8% council rent increase, increased service charges and increased borrowing to bring the Housing Revenue Account into balance:

 

Among proposals to close the budget gap are a saving through challenging procurement costs of £3m, digital including AI innovation £1.43m, service efficiencies of 1% £3.2m, staffing reduction £400k, increased fees and chages £500k, self-service web-forms rather than email £655k, lane rental increase to utility companies £350k , off-street parking charges increased to market rates £130k.  There also be less tolerance of bad debt and an effort to get maximum market rent from Brent properties other than council homes.

Spending currently underway ahead of the May election on roads and tree planting is largely financed as a one-off by the Neighbourhood Community Infrastructure Levy. 

Savings/Cuts proposed 

Hover mouse over foot of extract to enlarge.

 

 

Brent Council has launched a consultation on the proposals: 

Councillor Muhammed Butt, Leader of Brent Council, said: 

Many councils continue to operate under severe financial duress. Brent isn’t immune to these challenges, but we have continued to manage our finances responsibly over many, many years, allowing us to protect the frontline services that matter most. 

We are now accelerating our programme to transform the way we work so we can continue to protect essential services. This isn’t an easy task but I’m pleased that most of our £10million financial plan will come from working more efficiently and effectively. If you live or work locally, I urge you to have your say on the proposals. 

Residents, businesses and local partners can share their views on the council’s 2026-27 budget proposals until 30 January 2026.