Conservative opposition leader Peter Zinkin questions recent cabinet claims that the council’s financial position has improved

Hendon Town Hall with (inset left) council leader Barry Rawlings and (inset right) opposition group leader Peter Zinkin

Budgets aren’t just numbers – they represent public services, local infrastructure, education, care for vulnerable communities, and more. When a council falls short on its financial commitments, it risks compromising the quality of life for the 400,000 of people who rely on those services every day.

Barnet Council’s financial health took a dramatic turn for the worse in 24/25, almost all the available reserves were used up, requiring Exceptional Financial Support from Angela Rayner’s department to balance the 25/26 budget.

Even worse, as the 2025/26 budget unfolds, it’s now clear that the local authority faces a staggering £55 million deficit – up £5 million from previous estimates this year. When the budget was approved it included a £37m contingency for inflation and other matters. Over £32m of this contingency has already been allocated in the first quarter report. Despite this massive contingency and planned cost savings (cuts and fee increases), the forecast overspend has increased by yet another £5m.

The initial £50 million gap in this year’s budget already posed significant challenges. It was a shortfall so severe that the council was forced to seek special permission to borrow funds to plug the gap (the Exceptional Financial Support).

This exceptional measure allowed the council to temporarily paper over the cracks. But borrowing has consequences. Every pound borrowed today will have to be repaid by Barnet’s residents tomorrow with interest. This moves the problem into future budgets, conveniently for this administration, after the local elections next year.

Despite the gravity of the situation, recent remarks from a senior cabinet member suggest an alarming disconnect from financial reality. According to council statements, the administration views this growing deficit as “progress.”

Such a claim is difficult to reconcile with the facts. Not only has the loan-bridged shortfall failed to shrink, but even the cost-saving measures already in place aren’t sufficient to meet current spending requirements. In other words, despite more than £20m of cost-savings, the £50m budget deficit is still growing.

What’s most concerning is the trajectory. Local authorities have a legal obligation to balance their budget. Barnet’s 25/26 budget was only balanced with the permission to borrow money. These figures demonstrate that, not only has this administration failed to start reducing the £50m deficit but that their policies have made matters worse. Barnet cannot keep on borrowing money to pay for everyday expenditure. This administration talks about progress, but the reality is deterioration. Their plan is not solving the problem.

The £50 million budget deficit didn’t appear overnight; it was the result of ongoing budgetary imbalances and repeated delays by this administration in implementing corrective strategies. The lack of decisive action, even now, compounds the frustration of those who have been urging fiscal accountability.

Barnet is a vibrant and diverse borough, but it deserves leadership that is serious about addressing its financial future. While borrowing may offer temporary relief, it cannot replace genuine solutions – such as more efficient spending, new revenue opportunities, or a full re-evaluation of council priorities.

The absence of a clear plan to reduce the budget deficit and then to pay off the borrowed funds only adds to the anxiety. Residents are being asked to shoulder the increased debt burden without any timeline or assurances that the situation will improve.

In summary, Barnet finds itself in deep financial distress and the current response from its administration has done little to resolve the problem or to inspire confidence it has a plan to resolve it.

If the budget trend continues unchecked, the long-term consequences for residents and services alike could be dire. If this administration really believes its recent press statement on the budget deficit, then quite frankly it is deluding itself on the seriousness of the matter.

The situation raises urgent questions about fiscal responsibility, transparency and long-term strategy under the current Labour administration.

Cllr Peter Zinkin is leader of Barnet’s Conservative group.

No news is bad news

Independent news outlets like ours – reporting for the community without rich backers – are under threat of closure, turning British towns into news deserts.

The audiences they serve know less, understand less, and can do less.

If our coverage has helped you understand our community a little bit better, please consider supporting us with a monthly, yearly or one-off donation.

Choose the news. Don’t lose the news.

Monthly direct debit

Annual direct debit

£5 per month supporters get a digital copy of each month’s paper before anyone else, £10 per month supporters get a digital copy of each month’s paper before anyone else and a print copy posted to them each month. £50 annual supporters get a digital copy of each month's paper before anyone else. £84 annual supporters get a print copy by post and a digital copy of each month's before anyone else.