Barnet’s £198m Financial Black Hole puts Council Tax and Services on the Line.

Barnet Council has approved a plan to tackle a projected £198 million budget gap by March 2029, leaving residents facing a sharp Council Tax increase and changes to essential public services.

Behind the £198 million spreadsheet deficit is a reality that threatens to reshape daily life across the borough. Barnet is home to London’s largest elderly population, driving an intense demand for adult social care. With care consuming £195 million of the net budget and temporary housing taking £43 million, the squeeze hits the safety nets supporting ageing parents, homeless children, and low-wage workers.

Councillor Simon Radford framed the emergency starkly: “The task is mammoth – we need to find £200m in savings or cost avoidance within three years.”

The fallout lands heavily on working families who earn too much to qualify for council support but lack the margin to absorb rising costs. To help close the gap, the council is reviewing Council Tax, which currently sits £438 below government benchmarks. The council is modelling standard 5% yearly increases, though steeper hikes remain an option.

For residents, higher bills alongside shrinking community support represent an immediate threat to household stability. “People are already struggling with the cost of living. If bills go up or services are cut, ordinary families will feel it,” said Sarah McDonnelly, a Barnet resident, aged 50. Andrew Carney, a local caretaker, aged 35, highlighted how stagnant wages leave no safety net: “There’s a lot more to this job than people realise, and the wages don’t reflect the work we do. I’m already careful with every pound I spend, so further increases in living costs would make things harder.”

As Cabinet decisions give way to public consultations, the coming months will test how much more financial pressure local communities can bear. With final budget votes approaching early next year, Barnet residents are left waiting to see whether their local services and their household budgets can survive the crunch.