Brent Council Confronts £10.4m Budget Deficit Amid Rising Service Demands
Brent Council has disclosed its draft budget proposal for the upcoming financial year, revealing a persistent £10.4 million deficit despite significant increases in both government funding and local taxation. The local authority has characterized the financial challenges as "serious and structural," highlighting ongoing pressures in core services such as adult social care, children's services, and housing.
Funding Increases Fail to Close Budget Gap
Following the Government's Fair Funding Allocation review, Brent Council's core funding is set to increase by £67.9 million between 2025/26 and 2026/27. This substantial uptick represents a major shift in funding methodology, now based on 2025 indices of deprivation, updated population projections, and current service demands. The new allocation also includes multi-year settlements and non-ringfenced grants, addressing long-standing calls from councils across London for more flexible funding arrangements.
Despite this significant funding boost, the council still faces a substantial budget shortfall. The local authority will implement the maximum allowable council tax increase of 4.99 percent for residents, which includes a 2 percent Adult Social Care precept. This comes alongside an expected mayoral precept increase of 4.1 percent, creating additional financial burdens for households across the borough.
Financial Impact on Brent Residents
The combined tax increases will require the average Band D property in Brent to pay £1,724.76 in council tax plus an additional £510.51 from the mayoral precept, resulting in a total annual cost of £2,235.27. These higher bills will undoubtedly impact residents already struggling with the ongoing cost of living crisis, creating additional financial strain for many households.
The council tax rises are projected to generate an additional £12.1 million in revenue for the local authority. However, even when combined with the increased central government funding, this still leaves the £10.4 million budget gap that must be addressed through service redesign and efficiency measures.
Structural Challenges Driving Budget Pressures
Deputy Leader and Cabinet Member for Finance and Resources, Councillor Mili Patel, emphasized the structural nature of the challenges facing local government. "Brent enters the next financial year at a moment of greater stability, but with continuing pressure on the services our residents rely upon the most," she stated. "Despite this improved settlement, the challenges facing local government remain serious and structural."
The council points to several key factors driving increased service demands and costs. More residents are living longer with complex needs, requiring additional support from adult social care services. More families are seeking assistance through children's services, while housing services have experienced a 21 percent increase in people presenting as homeless. Council figures indicate that homelessness cases are expected to reach nearly 9,000 by the end of the current financial year.
Housing Crisis Intensifies Budget Strain
The housing situation represents one of the most significant pressures on Brent's budget. The number of families in temporary accommodation has risen to 2,054, while the number of families in emergency accommodation has increased by 36 percent. These escalating housing needs contribute substantially to the council's financial challenges, as temporary accommodation represents a significant and growing expense.
Inflation, workforce shortages, and rising provider costs have further exacerbated the situation, "significantly increasing the price of delivering these services," according to council statements. These economic factors have made it increasingly difficult to maintain service levels while managing budget constraints.
Investment Plans and Efficiency Measures
Despite the budget challenges, Brent Council has outlined ambitious investment plans totaling more than £330 million across the borough. Key initiatives include £16.3 million for digital technology transformation to improve service access for residents, £5.1 million for neighborhood projects using Community Infrastructure Levy funds, and £1.5 million to enhance parks and high streets.
Significant housing investments include £23.1 million to deliver 291 homes in the Wembley Housing Zone, £60 million in housing stock to reduce reliance on costly temporary accommodation, and £81.3 million to resurrect the South Kilburn regeneration project. Additional investments include £10.5 million to modernize libraries, community centers, and public buildings, plus £4 million to create 200 new Special Educational Needs and Disabilities (SEND) places.
Addressing the Budget Shortfall
Specific details on where the council will cut £10.4 million from the budget were not fully detailed in the draft document. However, the local authority has previously outlined plans to implement efficiency measures including using artificial intelligence to redesign services, selling off empty buildings, and generating additional rental income from council properties.
The council's approach includes "harnessing technology" through AI to contribute to service redesign, making it easier for residents to access support online, partnering with local charities to address community issues, negotiating better deals with suppliers, utilizing data more effectively to support residents, and maximizing the use of empty council buildings through rental income generation or sales.
Leadership Perspective on Financial Management
Brent Council Leader, Councillor Muhammed Butt, acknowledged the difficult financial environment facing local authorities. "Many councils continue to operate under severe financial duress," he stated. "Brent isn't immune to these challenges, but we have continued to manage our finances responsibly over many, many years, allowing us to protect the frontline services that matter most."
Councillor Butt emphasized the council's commitment to transformation, saying, "We are now accelerating our programme to transform the way we work so we can continue to protect essential services. This isn't an easy task but I'm pleased that most of our £10 million financial plan will come from working more efficiently and effectively."
Future Uncertainty and Fiscal Discipline
Looking ahead, Councillor Patel highlighted ongoing uncertainty in local government funding. "While the Fair Funding Review has brought welcome stability in the short term, local government remains an unprotected department nationally, and future settlements will impact Brent greatly," she noted. "In this context, fiscal discipline is essential."
The council will formally set the budget and council tax rate on February 23, with the new rates taking effect from April. As Brent residents prepare for higher bills, the council continues to navigate the complex balance between maintaining essential services and addressing persistent structural budget challenges.
