Barnet Council faces £113.5m deficit by 2028, second largest in England

Barnet Council is projected to face a budget deficit of £113.5m by the end of the 2027/28 financial year. The figure, revealed in BBC analysis, makes Barnet’s shortfall the second largest among English councils, behind only Hampshire County Council’s £180m deficit.

The council plans £9.42m in savings for the 2026/27 financial year, which began in April. That amounts to £23.25 for each resident. However, the BBC’s analysis found that over eleven times that sum would be needed to close the gap by 2028. The projected shortfall per resident is £280.17.

Council tax rises despite government support

Band D council tax in Barnet increased by nearly £77 this year. The annual bill now exceeds £1,600. The rise came despite the council receiving £55.7m in exceptional financial support for 2025/26. A further £79.3m was allocated for 2026/27.

Exceptional financial support allows councils to treat some day-to-day spending as capital expenditure, which is typically funded through borrowing. KPMG analysis for Haringey Council estimated that each £1m of such borrowing could cost councils £62,000 annually in interest.

Related Borough Coverage4 min read

Barnet flats keep pumping sewage into rivers as mayor funds pilot

Two blocks in the borough still discharge waste while the mayor of London has pledged £2.7 million for a three‑year dedicated officer scheme to enforce repairs.

Labour administration defends financial strategy

Barnet Council has been under Labour control since 2022. The party retained power in May’s local elections but lost seats to the Conservatives, leaving both groups with equal representation. Peter Zinkin, leader of the Conservative opposition, criticised the administration in April.

“The administration’s use of exceptional financial support is akin to publishing a financial suicide note to the borough’s residents.”

Peter Zinkin, Conservative group leader, Barnet Council

A council spokesperson said the use of exceptional financial support reflects government recognition of underfunding in recent years. They added that the measure is being used to bridge the gap while the council works towards financial sustainability within three years.

The spokesperson said the £113.5m figure was the estimated gap when the 2026/27 budget was set. They confirmed the council is taking steps to reduce it by March 2027. Measures include investing in prevention, housing and digital transformation, and reducing costs in social care and homelessness services.

The council is also collaborating with neighbouring boroughs and London Councils to adopt best practices. The spokesperson said a resolution to the Casey Commission, an independent review of adult social care due in 2028, would help councils regain financial stability.

What happens next

Barnet Council aims to reduce its projected £113.5m deficit by March 2027. The authority has not yet published details of further savings or revenue-raising measures. Residents will see the next council tax bill in April 2027.