Cllr Peter Zinkin blames the current administration for Barnet Council’s financial problems

Every council’s budget is split into two main categories: statutory and discretionary spending. There are also reserved pots of money; for example, government grants which can only be used for schools or housing and also monies that the council can put aside for a rainy day. Some of these rainy-day funds can be used for anything (general reserves) and some are for particular purposes (earmarked reserves).

The council is required by law to fund essential services like social care, education and homelessness (statutory expenditure), ensuring these important areas receive the financial support they need. Councils have little flexibility around these areas.

Discretionary spending, on the other hand, is where councils have the flexibility to use money for local priorities that improve residents’ lives beyond that which the council has to do by law. This includes funding for parks, some road repairs, youth services, some library services, and cultural programmes. These are the services that help to make a community vibrant and enjoyable, and enhance our quality of life.

In addition to their annual budgets, councils keep reserves to handle unexpected challenges. General reserves allow councils to respond to unforeseen emergencies. They can also be used for important community projects.

These general reserves act like a safety net, helping councils maintain essential services during tough financial times. However, they are limited. They can only be used once, and when used up, it can be extremely difficult to replenish them.

Councils must balance their budget by law. So, if there are no reserves left the only way the budget can be balanced is by cutting services or raising council taxes, both of which directly affect residents. When reserves run low, it can lead to significant cuts in services. Parks may become neglected, road repairs could be delayed, and important community centres, like East Barnet Food Hub, might close, reducing support to vulnerable residents.

The effects of Labour’s financial decisions are already visible. They have been burning through general reserves to fund short-term political projects like paid citizen assemblies. In addition, Barnet Labour promised to return 1% of council tax in 2022 but ended up raising it by essentially the legal maximum. Most probably, council tax will once again be raised to the legal maximum to fund the current budget problems.

As a consequence of these budget problems, the Labour Council now faces significant service reductions. The cuts they will have to make will hit vulnerable groups the hardest, including young people, the elderly, and low-income families. Community projects that matter to residents—like local sports clubs and affordable events—are now at risk. The people who depend on these services are facing the biggest challenges due to Labour’s spending habits. Only last week Labour had to cancel their much-promoted cultural strategy launch because of these budget problems.

When we handed the council to Labour in 2022, borrowing was low, and the council had significant cash reserves. After two and a half years of Labour’s spending, the cash has run out and expensive borrowing is now required which the residents of Barnet will be paying for the next 50 years.

If Labour continues this way, residents will see fewer services, higher taxes, and a council that struggles to meet their needs. Sound financial management is essential for the community’s future, which Labour in Barnet has failed to deliver, crashing the council’s finances in just two years.

Labour is financially incompetent, Labour is bad for Barnet.

Peter Zinkin is the leader of the Barnet Conservative group.

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