Barnet Council is asking the government for £59 million to help balance its budget due to rising costs and increased demand for services
Barry Rawlings, the council’s Labour leader, explained that they’re facing a “perfect storm” of issues. Since 2010, government cuts have slashed their budget, and inflation has driven costs up. Plus, there’s a growing demand for services they must provide.
Rawlings, who’s temporarily handling the council’s finances, pointed out that many councils are in the same boat. The outer London area, known for its care homes, is feeling the pinch especially hard.
The Exceptional Financial Support (EFS) program was set up by the government to help councils manage these financial pressures. It’s a way to prevent councils from declaring they can’t set a legal budget, which is a serious situation.
Barnet isn’t alone in this. Nearby councils like Haringey and Enfield have also asked for financial help recently. Rawlings mentioned that they expect a budget gap of £52 million for the next financial year, even with a proposed tax rise.
He’s been having positive talks with the government, which seems to understand the challenges councils are facing. The request for support isn’t something they took lightly; it’s about giving them the breathing room to tackle these unprecedented pressures.
However, not everyone is on board. Conservative group leader Peter Zinkin criticized the council, saying they’re not addressing the root problems and are just pushing issues down the road.
The council’s spokesperson noted that the £59 million request could change as they finalize their budget. They’re hopeful, as no council that has applied for EFS has been turned down so far.
