A North London council has warned residents that its finances are “at breaking point” as it plans to raise council tax by the maximum legal amount again next year.
Costs for waste collection services are also set to go up as part of the local authority’s drive to find a further £16million of cuts.
Brent Council has released its draft budget proposals for next year, which residents have the chance to give feedback on ahead of it being ratified in February. The council claims the plans are designed to ensure core services can continue to be delivered, as well as “protecting the organisation’s longstanding financial position”.
Last year’s budget required £8million worth of cuts but the council warned back in July that further savings would be needed to deliver a balanced budget for 2025. It was revealed last month that one of the measures used to cut costs will be to slash the council tax support scheme.
Alongside this, council tax is expected to rise by the maximum 4.99 per cent, the same increase as last year.
Whilst council tax has been rising year on year, cuts totalling £222m have been made in Brent alone since 2010. Over this period, council’s have sold off state-owned assets, including libraries and community-use spaces.
Councils across London are facing a series of unprecedented financial challenges. This, according to Brent Council, is caused by a “perfect storm” of high inflation, rapidly increasing demand for services, and reduced government funding.
It points to an increasingly expensive adult social care bill due to an ageing population, as well as soaring levels of homelessness – with around 150 new families presenting as homeless most weeks – as reasons for the increased financial pressure.
As part of the £16m needed to be saved to balance the 2025/26 budget, the council proposal includes:
* Increasing the charge for bulky waste collection from £40 to £55
* Increasing the garden waste annual subscription from £65 to £69
* Increasing council tax by the maximum 4.99 per cent, with two per cent ring-fenced for adult social care
* Scaling back the Council Tax Support Scheme
The leader of Brent Council, Cllr Muhammed Butt, said: “The legacy of 14 years of austerity, high inflation, and the increasing demand for the services we provide has pushed councils’ finances to breaking point. Local authorities in London face a £600m shortfall in funding this year alone. This means for most councils in London, balancing our budgets will be the toughest year yet.”
He added: “Put simply, since 2010 we have less money to serve more people, who need more services, which have become simply more expensive to provide. This means we must now consult residents on proposals to save an extra £16million while increasing council tax 4.99 per cent – with 2 per cent ringfenced for adult social care. Given the wider situation which councils like ours face, it does mean we will be facing some extremely hard choices in the months ahead.”
