The Labour administration’s decision not to raise council tax by the maximum amount from April was slammed by Tories as “financial suicide”, reports Joe Ives, Local Democracy Reporter

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

Councillors have passed Barnet Council’s new budget despite opposition concerns the local authority is “committing financial suicide” in a bid to bolster its election chances.

The budget for the 2026/27 financial year, which begins in April, was passed at a full council meeting last night (Thursday 5th), with both Labour and Conservatives taking the chance to fire the starting pistol for their upcoming electoral campaigns.

It finds the local authority using emergency measures to manage budget shortfalls for the second year in a row.

Speaking ahead of the vote, Labour council leader Barry Rawlings said the budget was aimed at “delivering quality services while keeping council tax low”.

The council would continue its “relentless hunt for savings,” he argued, adding his administration was committed to looking after the local authority’s long-term financial health.

Conservative opposition leader Peter Zinkin criticised the plans, describing the council’s budget strategy “as nothing short of financial suicide on a breathtaking scale”.

Cllr Zinkin deployed charts and even a slideshow to argue the local authority could have an annual deficit of over £200m in the next five years.

One of the main concerns is the council’s plans to use exceptional financial support (EFS) from the government for the second successive year.

The council needed £55.7m of EFS to balance the books for 2025/26 and is requesting a further £79.3m to do so in 2026/27.

EFS allows councils to treat some day-to-day spending as longer-term capital spending, which is usually funded through borrowing. A total of 37 authorities across England have been granted exceptional financial support for the 2026/27 year – seven more than in the previous year.

Earlier this week, neighbouring Haringey Council agreed to similar measures, and has been allowed to use even more EFS than Barnet, with £54m in 2025/26 and £84m for the upcoming year.

In Barnet, Cllr Rawlings said he was proud that his administration had never raised council tax by the maximum amount. The charge will still be going up by 4.98% this year, however – just 0.01% shy of the limit.

The decision means the average Band D resident will be paying 15p less than they could have been over the next twelve months – the practical equivalent of a 20% saving on a single pint of milk. As a result, the overall Band D council tax bill will go up nearly £77.

This move attracted the ire of the Conservative opposition. In February, they said the local authority would need to raise council tax by 30% over the next three years to address its financial woes.

However, it’s not clear how such a move could be implemented, as the maximum amount a council can increase its council tax in one year without holding a referendum is 4.99%.

Responding to Tory criticisms of not raising council tax to the maximum amount, Cllr Rawlings said: “Council tax increases are our last resort. For the Conservatives it’s their first choice.”

He accused Cllr Zinkin of “channeling his inner Dad’s Army” in the alternative budget put forward by Conservatives. It was, he said, the plan for “a council of despair”.

Cllr Zinkin responded, accusing the council of trying to hide a “black hole” of debt ahead of the May elections and said the budget was tantamount to a “betrayal” of Barnet residents.

Alison Moore, the Labour administration’s cabinet member for adult social care and health, responded by saying the council had already made savings and had improved the finances of the local authority since taking power in 2022.

She described the new budget as “a roadmap to financial sustainability” which was investing money now to save in future.

UPDATE: This story was updated at 10.28pm on March 6th to give the correct figure for Barnet’s council tax rise – and further updated at 5.36pm to clarify the Conservatives’ position on this.

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