Opposition leader Peter Zinkin says Barnet is in a precarious position

Barnet Conservative leader Cllr Peter Zinkin

Last month, Barnet Council’s cabinet received a sobering report that laid bare the borough’s mounting financial challenges. The document confirmed the significant overspend for the 2024/25 fiscal year, with no new projections for 2025/26; the council still forecasts a daunting £50 million deficit.

This bleak outlook underscores the precarious state of Barnet’s finances, with no clear path to recovery in sight. The long-awaited Public Spending Review did not provide material help, and recent policy pronouncements from Angela Rayner’s department suggest yet more money will be reallocated away from London.

In Barnet, the council publishes an annual report on the progress it is making against its strategy; this is not a real report, merely a platform for the administration to promote what it thinks are its successes.

The report was 69 pages- unbelievably, the financial problems of the borough get almost no mention and are relegated to one and a half pages in the back of the report. This administration is demonstrably living in a fantasy world in which the depth of the financial problems the borough faces are simply not recognised.

Compounding these difficulties, the council has been forced into an embarrassing reversal on a controversial development project above Edgware’s underground station. To salvage this deeply unpopular initiative, Barnet has had to agree to return half of its Community Infrastructure Levy (CIL) funds and allocate an astonishing £41m of these funds back to the developer to ensure the development’s viability.

The lack of detail about this decision erodes public trust in the council’s decision-making and its commitment to listening to residents. In fact, despite being asked to communicate with the residents by us at last month’s overview and scrutiny committee, the cabinet refused to accept questions from the residents’ group who opposed this development, forcing us to ask the questions on their behalf at that cabinet meeting.

Housing, a cornerstone policy of the current Labour administration, both locally, in London and nationally, is another area where Barnet is failing to meet its own target. The cabinet papers revealed a significant decline in the number of homes being delivered, particularly through the council’s Registered Social Landlord (RSL), Open Door Homes.

The challenges are further exacerbated by the recent Ministry of Housing, Communities and Local Government (MHCLG) settlement, recently announced by the chancellor, which will not be sufficient to bridge the gap.

Angela Rayner’s department faces ongoing real-term cuts, severely limiting central government resources for local authorities like Barnet. The chancellor admitted that the only way local authorities could survive is by increasing council tax in real terms every year for many years to come. Additionally, the Home Office budget has been slashed, with ripple effects that will likely impact policing in the borough. Residents can expect additional council tax precepts from the Mayor of London to mitigate the damage, placing further strain on household budgets.

The financial settlement has been particularly unkind to London. Major infrastructure investments are being directed outside the capital, prompting Labour Mayor Sir Sadiq Khan to publicly criticise the Treasury. In a statement, Sir Sadiq expressed frustration, noting, “It’s disappointing that there is no commitment today from the Treasury to invest in the new infrastructure London needs.”

This sentiment resonates in Barnet, where the council is grappling with the needs of an ageing population and a growing number of asylum-seeking families welcomed into the borough in line with its sanctuary status. The lack of adequate funding undermines the council’s ability to provide essential services to these vulnerable groups and our existing residents.

We were led to believe that the combination of a Labour government, a Labour mayor, and a Labour-led council would deliver robust support for Barnet. Instead, residents face the prospect of higher taxes and reduced services, a bitter pill to swallow given the promises made during election campaigns.

The financial settlement’s bias against London, coupled with local mismanagement, has left Barnet in a precarious position. The council’s inability to deliver on housing, its humiliating concessions to developers, and the massive budget deficits paint a picture of an administration struggling to meet the needs of its residents.

As Barnet navigates this perfect storm of financial woes, residents are left to bear the brunt of these shortcomings. Increased council tax burdens and diminished services are not what voters envisaged when they supported Labour at the local and national elections.

The question remains: will Barnet’s residents continue to pay the price for decisions made in Whitehall and the town hall? Without urgent action and a fairer financial settlement, the borough’s challenges will only deepen, leaving its most vulnerable residents at risk and with all of us facing higher taxes and reduced services.

Peter Zinkin is leader of Barnet Conservative group

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