Recent review of funding offers cash-strapped Barking and Dagenham Council £10m more than expected, reports Nick Clark, Local Democracy Reporter
Barking and Dagenham Council is set to receive £10million more from the government in April than expected, the town hall has confirmed.
The council told the Local Democracy Reporting Service (LDRS) that the government has indicated it will provide grant funding of £173.8m for the 2026/27 financial year.
Labour council leader Dominic Twomey told councillors the funding could mean the town hall will have to “worry less” about spending cuts.
He said it could provide “breathing space for our staff” who “for many years now not only had to deliver business as usual, they’ve had to look at the cuts they need to implement”.
A draft budget strategy approved by council leaders in December said the council predicted it would need to find an extra £21.8m to cover its spending in the 2026/27 financial year.
However, changes to the way the government allocates funding to local authorities mean the council is now set to receive £10m more in grants than previously expected for the coming year and £24m more than last year, according to a town hall spokesperson.
The government’s ‘fair funding review’ in December adjusted council funding based on up-to-date population data and ways of measuring deprivation that take greater account of housing costs.
A council spokesperson confirmed to the LDRS this week that this means Barking and Dagenham Council is set to receive £173.8m in central government grants.
Speaking to a meeting of all councillors last Wednesday (28th), Cllr Twomey said the increase would “go a long way to providing a bit of breathing space for our staff” who have had to deliver services during 15 years of austerity.
Cllr Twomey said: “Hopefully they’ll have less worry about what cuts they need to make next year.”
The Labour leader said the local authority was a “lean council” but that the funding review reflected high deprivation levels in the borough.
He said: “This funding has finally recognised the fact that whilst we have huge aspiration, huge opportunity and potential, we have significant challenges.
“We have significant levels of deprivation and poverty – child poverty, fuel poverty – across the piece.”
Cllr Twomey added that the extra money could help the council implement changes aimed at making its services more “streamlined” and efficient.
He said the council is “heading in a good path” but can’t “in any way, shape or form be complacent”.
The £173.8m was announced on a provisional basis, with the final amount yet to be confirmed. Updated budget plans are likely to be published this Monday (9th).
