Barnet Council Faces £200m Deficit, Council Tax Hike Likely

Barnet Council's Labour-controlled cabinet is facing accusations from Conservative councillors of failing to be transparent with residents regarding a likely substantial increase in council tax next year. The council is attempting to address a £200 million budget deficit, a situation that could lead to significant financial implications for households across the borough.

Potential for Significant Council Tax Rises

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If Barnet Council receives government approval to go beyond the current 5% limit on council tax increases, residents could be looking at average weekly rises ranging from £8 to £12. This measure is being considered as a way to begin reducing the council's substantial budget shortfall. For the past two years, the council has relied on additional government funding to balance its accounts, but advice suggests that increasing council tax is now unavoidable.

One proposed option involves increasing council tax to the national average. This would necessitate a 32% rise, which for a Band D property, would translate to an annual increase of £500. This step is intended to generate an additional £70 million needed to bring Barnet's council tax revenue in line with the national average. The council is reportedly in discussions with the government about whether to implement such an increase all at once or spread it over several years.

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Councillor Peter Zinkin, Conservative group leader, criticised Councillor Simon Radford, cabinet member for finance, for not adequately informing residents about the potential financial impact. Councillor Zinkin stated that most residents are unaware of the potential weekly increases of £8, £10, or £12, describing it as a material change to household finances. Councillors Richard Cornelius and David Longstaff also urged the council to inform residents about the possibility of an "enormous" rise, potentially up to 30%.

Councillor Radford responded by asserting that the council had been open about the difficult decisions required to reduce the deficit and achieve a balanced budget by March 2029. He explained that specific details about council tax increases could not be provided until discussions with the government concluded and accurate forecasts for spending and funding were available. He noted that public consultations, including online engagement, had already taken place.

Public Engagement Opportunity

Residents will have an opportunity to express their views on the council's financial proposals at a Barnet Question Time event scheduled for Monday, October 26. This event will allow attendees to discuss options, such as whether any council tax increase should be implemented in a single year or phased over time. Councillor Radford acknowledged that some residents might prefer a single, larger increase to get it over with, while others might favour a more gradual approach, even if it incurs higher costs in the long run.

The council is also exploring spending cuts and revenue increases to find £200 million in savings. Councillor Cornelius acknowledged that this would involve difficult decisions, potentially impacting adult services, children's budgets, and schools, and could lead to job losses.