Barnet Council seeks permission for council tax rise
The council is among three London authorities asking the government to exceed the 5% cap to address funding gaps.
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Barnet Council is among three London local authorities that have formally requested permission from the government to increase council tax rates above the established 5% national cap. The Department for Levelling Up, Housing and Communities is considering these applications, which are intended to help bridge growing budget deficits.
Funding Reforms and Budgetary Pressures
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The applications from Barnet, Bromley, and Lambeth councils stem from financial challenges they attribute to recent government funding reforms. These reforms, which include a new framework known as the Fair Funding Formula, have been criticised by some local authorities for reducing funding, particularly in areas perceived to have greater revenue-raising potential. Councils argue that these changes have created substantial funding gaps that cannot be addressed within the current council tax limitations.
While specific figures for Barnet's budget shortfall have not been detailed in the available information, the Royal Borough of Kensington and Chelsea Council, which is also seeking permission for a significant increase, faces a projected shortfall of approximately £65 million. This neighbouring borough is considering council tax rises of 65% or 70% for the 2027/28 financial year. Other London boroughs, including Hammersmith & Fulham, Wandsworth, and Westminster City Council, have also warned of substantial potential increases to balance their budgets.
Government's Position
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The government has defended its funding reforms, stating that they are intended to rectify an outdated system. A government spokesperson indicated that the changes aim to ensure that wealthier areas do not disproportionately benefit from government support at the expense of communities facing greater needs. The stated objective of these reforms is to establish a system that is considered fairer for taxpayers across the country.
Next Steps
It is currently unclear when the Department for Levelling Up, Housing and Communities will make a decision on the requests from Barnet, Bromley, and Lambeth councils. If permission is granted, residents will likely be subject to public consultation before any final decision on the council tax increase is implemented, typically at the start of the next financial year.
Questions this report answers
+Why are Barnet Council considering increasing council tax?
Barnet Council is seeking government permission to raise council tax above the 5% national cap due to financial pressures. These pressures are attributed to government funding reforms, which the council argues have created significant budget shortfalls that cannot be met within the current limits.
+Which other councils are asking for similar permission?
Alongside Barnet Council, both Bromley Council and Lambeth Council have also requested permission from the government to increase their council tax rates beyond the standard 5% limit. This indicates a shared challenge among several London local authorities.
+What is the government's response to these requests?
The government states that its funding reforms are designed to create a fairer system for taxpayers nationwide. They argue that these changes are fixing an outdated system where some wealthier areas received high levels of support while communities with greater needs received less.
Barnet Press News Desk
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