Protecting services, extra support for people struggling with the cost of living crisis, more money to provide social care, further spending on improving residents’ homes and keeping the streets clean have been agreed in Barking and Dagenham Council’s 2023-24 budget.
The financial plans, approved at a full council meeting on Wednesday 1 March, outline how residents on a low income could be eligible to pay just 15% of their total Council Tax bill – the figure had previously been 25%.
Other help includes an extra £500,000 to be added to the council’s hardship fund, which launched in October 2022 as a way of supporting people most affected by the rising cost of living, and a commitment to keep rent and service charge rises below inflation.
The new measures follow the launch of eight community hubs across the borough, designed to bring a range of vital support and council services to residents’ doorsteps as well as continuing to invest in improvements to online services which residents can access at any time.
The 2023/24 budget doesn't include cuts to services as the council continues to protect the services residents need.
As part of the budget announcement, Council Tax will increase by 4.99% (excluding the GLA element) - 2.99% towards the general fund and 2% ringfenced for the adult social care precept. This works out as an additional £69.33 for the year – around 19p a day – on a Band D property.
Councillor Dominic Twomey, Deputy Leader of the Council and Cabinet Member for Finance, Growth and Core Services, said: “This is one of the most challenging budgets we have ever had to set. Put simply, our funding from the government is going down in real terms, the demand on our services is going up, and global factors like coronavirus and the war in Ukraine are adding huge pressure to overstretched budgets.
“We’ve already delivered more than £175m in savings since 2010 and there’s a further £5.689m planned this year – we’re reaching the point where there’s nothing left to cut. This isn’t unique to Barking and Dagenham, this a nationwide issue and at some stage it will all break. However, instead of helping, the government are just leaving local authorities across the country, regardless of the political group in power, to face this perfect storm on their own.
“We shouldn’t be forced into Council Tax rises during the worst cost of living crisis in half a century, but we’ve been given no choice. If we’re to unlock the additional funding offered to us by the Department for Levelling Up, Homes and Communities then, as a requirement, we have to increase to the maximum limit the government has set. It’s not right and it’s not fair.
“We know the people of our borough are disproportionately affected by the cost of living crisis, with as many as one in four residents having less than £100 in savings and almost half of all children living in poverty. We will continue to do all we can to stand with and support the people of Barking and Dagenham, which is why it’s important our budget includes further help for people struggling to make ends meet.”
The financial plans have been set against a backdrop of severe and sustained cuts to local government, which have seen the council’s funding slashed from £103m in 2010 to the equivalent of £57m when taking inflation into account.
Despite the pressures faced, the council has committed to an investment totalling £203.57m across all services including schools, highways, bins, and housing.
The report also highlights how the council’s investment in improving residents’ homes will continue to be monitored and carried out as necessary to provide safe and suitable accommodation.
In an effort to continue to cut costs, the budget outlines how changes to the opening times of buildings including Barking Town Hall, as well as the closure of the old Pondfield offices, will help save thousands of pounds.
Social care remains a significant spend for the council, with the budget acknowledging there was an “increased competition for provision and inflated prices within the market”.
Cllr Twomey added: “We’ve been honest for many years that providing social care for the most vulnerable adults and children in our community is expensive, and for every £10 we spend, £7 goes on their care before we can fund anything else.
“If the demand and prices in this area continue to increase, this will only further squeeze our finances and that is why it is vital the government stop sticking their head in the sand and start helping.”
Residents can access a range of Cost of Living Support, including help with energy costs, money worries, food and wellbeing.
The Mayor of London Sadiq Khan is proposing a separate 9.7% increase to Council Tax to cover services such as the Metropolitan Police and London Fire Brigade.