Barnet Council Considers 5% Tax Hike, Fortnightly Bin Collections

Barnet Council is confronting a substantial financial deficit, with projections indicating a shortfall of £200 million that could escalate to £243.5 million by the 2030-31 fiscal year. The council has stated that "very painful" decisions are imminent to address this "dire financial position" and balance its books. This warning follows a government-commissioned review by the Chartered Institute of Public Finance and Accountability (CIPFA), which described the borough's financial standing as "highly fragile" and noted a slow pace in implementing necessary reforms.

Among the measures being considered to bridge the financial gap are a council tax increase of close to the legal maximum of 5% and a shift in waste collection services from weekly to fortnightly. Switching bin collections to an alternate weekly service is estimated to generate savings of £400,000 per year, a practice adopted by many other local authorities. Barnet Council has called for a "brutally honest conversation with residents" regarding the necessary steps to achieve financial sustainability.

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The authority faces a £200 million budget deficit over three years, driven by social care and housing costs.

Fragile Financial Position and Missed Opportunities

The CIPFA review highlighted that Barnet Council is one of nine London boroughs relying on exceptional financial support from the Treasury and is projected to have the largest budget gap among its peers by next year. The report identified "savings fatigue" and the deferral of difficult decisions as contributing factors to the council's financial challenges. It also noted that previous decisions to increase council tax by less than the maximum permissible had constrained income flexibility, failing to account for materially higher demand and cost pressures in areas such as adult social care, temporary accommodation, and children's social care.

Councillor Simon Radford, Barnet's cabinet member for financial sustainability, acknowledged the scale and pace of change required to address the structural deficit. He stated that while the council has brought spending under control and reduced its call on exceptional financial support, the growing demand for services outstrips income and government funding. The report's recommendations for reviewing council tax levels and waste collection will be acted upon, with the budget assuming a council tax increase near 5%.

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Resident Input and Next Steps

The CIPFA analysis suggested that switching to alternate weekly bin collections, a measure already implemented by three-quarters of English local authorities, represented a "missed short-term opportunity" when last considered in 2019. The report indicated that Barnet's waste services showed weaker productivity and recycling performance compared to other London boroughs. The council cabinet was expected to consider reforms to waste collection, temporary accommodation, children's services, and adult social care by the end of September.

Residents have an opportunity to voice their opinions on the council's financial plans and moves towards sustainability at the upcoming Barnet Question Time event on Monday, 26 October. Further information on attending this event can be found via the provided Eventbrite link.