Brent Council is preparing to implement the maximum permitted council tax increase from April, even as revised central government allocations are set to lift its spending power by £67.9 million over two years.
The uplift follows the Government’s recalibration of the Fair Funding Allocation formula, which now incorporates updated deprivation indices, population projections and service demand metrics in an effort to address longstanding disparities in council funding.
Despite the enhanced settlement, the north-west London authority continues to face a projected budget gap exceeding £10 million, reflecting sustained structural pressures in high-demand frontline services.
Rising Costs And Service Pressures
Council tax for residents will rise by 4.99%, including a 2% Adult Social Care precept, while the mayoral precept is expected to increase by a further 4.1%, compounding household cost burdens.
For an average Band D property, the annual council tax charge will reach £1,724.76, with an additional £510.51 attributed to the mayoral precept, bringing the combined total to £2,235.27.
Although the increase is forecast to generate £12.1 million in additional revenue, this uplift remains insufficient to offset escalating demand in adult social care, children’s services and housing provision.
Deputy Leader and Cabinet Member for Finance and Resources, Cllr Mili Patel, said: “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. […] Despite this improved settlement, the challenges facing local government remain serious and structural.”
The council points to demographic change, with more residents living longer with complex needs and a rising number of families requiring intervention, as key drivers of sustained expenditure growth.
Inflation, workforce shortages and rising provider costs have further intensified financial strain, increasing the underlying price of delivering statutory services across the borough.
Housing Demand And Investment Commitments
Housing pressures remain particularly acute, with a 21% rise in homelessness presentations and nearly 9,000 cases expected by the end of the financial year.
The number of families in temporary accommodation has climbed to 2,054, while emergency accommodation placements have increased by 36%, underscoring deepening affordability challenges.
In response, the council has outlined more than £330 million in capital investment, including £23.1 million for 291 homes in the Wembley Housing Zone and £60 million aimed at reducing reliance on costly temporary accommodation.
Additional allocations include £81.3 million for the South Kilburn regeneration scheme, £4 million for 200 new SEND places, and targeted funding to modernise public buildings, parks and digital infrastructure.
However, details of how the remaining £10.4 million shortfall will be addressed remain limited, with previous proposals referencing technology-driven service redesign and the potential sale or commercialisation of surplus council properties.
Cllr Patel cautioned: “Looking ahead, uncertainty does remain. 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. In this context, fiscal discipline is essential.”
