The Finance and Growth Overview and Scrutiny Sub-Committee of Barnet Council met on Thursday 08 October 2026 to discuss the council's financial sustainability and business planning. Key discussions focused on the significant budget gap facing the council, proposed strategies to address it, and the council's response to the Draft London Plan. The committee also reviewed the council's work programme and received updates on ongoing Task and Finish Groups.

Our Plan for Financial Sustainability 2026-2029

The committee considered Our Plan for Financial Sustainability 2026-2029, a report detailing the council's strategy to address a projected budget gap of £198 million by 2029/30. The plan adopts a cost-driver-led approach, aiming to balance the budget, reduce reliance on Exceptional Financial Support, and improve the council's long-term financial trajectory. It outlines five delivery blocks – prevention, progression, productivity, service and asset review, and income – supported by three enabling blocks: prediction, change management, and financial governance. The plan identifies £84 million in in-flight opportunities and a further £116 million to be developed through a pipeline of initiatives.

Councillor Simon Radford, Cabinet Member for Financial Sustainability, presented the plan, emphasizing the need to bend the cost curve by intervening earlier to prevent residents from reaching crisis points. He highlighted that reduced independence is the largest cost driver, accounting for approximately £90 million of expenditure, and that current prevention efforts are not fully aligned with this. The plan proposes an increase in Council Tax, which would generate an estimated £70 million over the period, but this requires government approval.

Concerns were raised by councillors about the adequacy of the plan, given the scale of the financial challenge and past attempts to achieve savings. Councillor Radford acknowledged these concerns but stressed the availability of new technological tools and the burning platform of the council's financial situation as drivers for this initiative. Councillor Nick Mearing-Smith questioned the council's ability to meet legal obligations within the proposed financial framework, suggesting a need to re-examine these obligations themselves. Councillor Barry Rawlings, Leader of the Council, responded that while local government finance is fundamentally broken, the council must still operate within the current system and lobby for reform. He also confirmed ongoing lobbying efforts regarding EFS reform and borrowing rates.

The plan aims to achieve £200 million in recurring financial benefits by 2029/30. The committee noted that while income, including Council Tax, is part of the solution, it cannot solely address the deficit; expenditure must also be reduced. The plan acknowledges the need for ongoing monitoring and refinement, with a focus on learning from pilot projects and scaling successful interventions.

Business Planning 2027-2032 (Medium Term Financial Strategy)

The committee also reviewed the Medium Term Financial Strategy (MTFS) for 2027-2032, which forecasts a budget gap of £113.5 million for 2027/28 before savings. The MTFS highlights significant pressures in adult social care, homelessness, and temporary accommodation, as well as financing costs associated with Exceptional Financial Support (EFS). The council is seeking approval for a Council Tax increase above referendum limits and is in ongoing discussions with the MHCLG regarding this and EFS.

The report detailed indicative pressures of £39.5 million for 2027/28 across various departments, with Communities, Adults and Health, and Temporary Accommodation identified as major pressure areas. Savings proposals totalling £7.9 million for 2027/28 were also outlined, primarily from Children and Family Services, Communities, Adults and Health, and Growth departments. The MTFS assumes a progressive increase in Council Tax collection rates under the new contract with Liberata, aiming for 98.93% by 2030/31.

The committee noted the ongoing conversations with central government regarding Council Tax flexibilities and Exceptional Financial Support, and the significant budget gap that will require further action beyond the initial savings identified.

London Borough of Barnet's Response to the Draft London Plan Consultation

The committee considered Barnet's proposed response to the Draft London Plan, a statutory spatial development strategy for Greater London. While supporting the objective of sustainable growth, Barnet's response raises concerns about the proposed housing target of 32,849 homes, which is the highest allocated to any London borough and includes an assumption of 7,000 homes from Green Belt release. The council argues that this target is not supported by sufficient evidence demonstrating deliverability, particularly concerning infrastructure capacity, site availability, viability, and market conditions.

Concerns were also raised about Barnet's classification within Location Band C for affordable housing, with a 20% threshold deemed too low to maximise affordable housing delivery. The council advocates for greater local flexibility in setting affordable housing thresholds based on robust viability evidence.

The response highlights issues with transport capacity, parking provision, and the reliance on the Sustainable Access Measure (SAM) for assessing development intensity, arguing that local character, infrastructure capacity, and place-specific circumstances should be given greater weight. The council also expressed concerns about the potential for tall building policies to negatively impact Outer London's character and the need for clearer guidance on the interaction between London-wide policies and local design codes.

The council supports the emphasis on environmental enhancement, green infrastructure, and biodiversity, welcoming the concept of a Barnet Regional Park as a means to achieve these goals. However, it stresses the need for infrastructure-led growth, with greater certainty on funding, delivery, and phasing of transport, utilities, and social infrastructure.

Cabinet Forward Plan

The committee reviewed the Cabinet Forward Plan for 2026-2027, identifying items for potential pre-decision scrutiny.

Task and Finish Group Updates

Updates were provided on several Task and Finish Groups, including Allotment Management and Governance, Food Security, and Fostering. The Flats and Flats Above Shops Waste and Recycling and Financial Sustainability in Barnet Schools groups were noted as commencing their work.

Finance and Growth Overview and Scrutiny Sub-Committee Work Programme

The committee reviewed and noted the draft work programme for 2026/27, which includes a range of topics for scrutiny, reflecting the council's priorities and resident concerns.

The meeting concluded with a discussion on the forward plan, including arrangements for Hanukkah, highlighting the ongoing engagement and planning for future council business.