Almost £9m of “savings” agreed for 2026/27 council budget but further £82.4m needs to be found by 2031, reports Nick Clark, Local Democracy Reporter
Barking and Dagenham Council’s leader has warned that “the next five years will not be easy” after councillors approved a “positive” budget.
The Labour-dominated council voted to approve its budget for the coming financial year yesterday (Wednesday 25th).
Council leader Dominic Twomey described the spending plans as an “investment budget” following an increase in government funding.
But he warned that the legacy of “14 years of austerity” would mean the council would still have to reduce costs in years to come.
Budget plans show the council intends to spend £266million in the coming financial year – up from £238.7m budgeted for last year.
The spending is funded by government grants, council tax, business rates and income from fees and charges.
The town hall says its spending power has increased by 11.5% thanks to the government’s ‘fair funding’ settlement that changed how it funds local authorities.
The biggest increases in spending are in areas where demand for services – and the cost of providing them – have rocketed across the country.
They include a £6.7m rise in spending on adult social care services and a £7.4m rise on children’s social care and learning disabilities.
However, the budget also includes £8.7m of “savings” comprising cuts and extra income, of which £4.5m were agreed in previous years’ budgets, as well as £1.78m “invest to save” projects.
The council will also have to find ways to reduce spending by £82.4m over the next five years to ensure funding continues to cover rising costs.
Presenting the spending plans, Cllr Twomey said: “This is a positive budget. This is an investment budget. But the next five years will not be easy”.
He said the council would not “salami slice” funding for services, but would seek to transform how it works to manage demand on them.
Opposition Green Party councillors challenged Cllr Twomey over plans to raise council tax by 4.99% – the maximim allowed – and plans to borrow money to finish ongoing regeneration projects.
Victoria Hornby asked: “Why increase council tax for families when fewer people can pay and poverty is rising?”
The opposition Green group’s leader Moin Quadri asked: “This council will be borrowing hundreds of millions to finish their old scheme.
“Why should hard-pressed residents pay for the past mistakes through hiking council tax or our debt repayment?”
Cllr Twomey said the council supported “the most vulnerable families that struggle” through its council tax support scheme. But he added that without the tax rise “we would not be able to deliver a balanced budget”.
He added that the council’s borrowing had funded investments into regenration schemes that “return money to this council” through rent. He said it had built “good quality, affordable housing” for families.
Cllr Twomey said this had “protected frontline services across the council for many years”. He added: “So there’s no need for our residents to be paying for that investment.”
The budget passed, with Labour councillors voting in favour. The three Greens and Conservative councillor Lynda Rice voted against.
