Residents are being urged to have their say on the latest budget proposals from Barking and Dagenham Council.
The council has shared its plans in the context of unprecedented and severe financial pressures which councils are facing up and down the country.
The financial challenges have been caused by inadequate government funding, coupled with rising inflation and soaring costs for essential services, particularly in children’s and adult services, as well as surging expenses for energy and utilities.
At the same time, Barking & Dagenham has high levels of deprivation and is witnessing growing demand for services as residents face increasing hardship and financial insecurity, following the pandemic and another winter marked by the cost-of-living crisis.
In addition to this, Barking and Dagenham has one of the fastest changing communities in the country today. Our population grew by almost 18% between 2011 to 2021, and 20,000 more children call our borough home than a decade ago.
Councillor Dominic Twomey, Deputy Leader and Cabinet Member for Finance, Growth and Core Services said: “The government has utterly failed to match this growth which means we are 40% down on our funding since 2010. Although we’re doing everything we can to reduce costs, leaving no stone unturned, it means we’re really struggling to provide the local services our communities rely on every day. To be very clear: councils have been abandoned and we urgently need fairer funding from the government.”
He went on to highlight the disproportionate burden on the council, stating: “People may not know that for every £10 we spend, £7 goes on caring for the most vulnerable people in our community before we can fund anything else. And demand on our services continues to rise, but government consistently fails to provide the extra funding we need.”
Despite the challenges, the council continues to support residents who are struggling with the cost-of-living crisis, where as many as one in four residents have less than £100 in savings, and nearly half of all children live in poverty.
The council has established a network of Community Hubs and worked closely with community partners to form a Cost of Living Alliance, providing essential support with energy costs, money concerns, food, and wellbeing.
Councillor Twomey added, “We already run an efficient, low-cost council and since 2010, we have made £175m of savings, and we will find more. We are reviewing all our services and making sure we are getting value for money from every pound we spend.
“This includes taking a number of measures to immediately reduce our spending, such as a pause on recruitment, making staff savings and stopping all non-essential spending. We’re also finding better, low-cost ways of delivering services, increasing income, and getting the best value from our assets.
“But this is an incredibly difficult time for local government and, like all local authorities, we will have to make some very tough decisions to balance our budget over the coming months. We will consider all options and nothing is off the table.”
Due to the severe financial pressures, as part of the 2024/25 budget plans, the council proposes a 5 per cent increase in Council Tax, including 2 per cent ringfenced for social care, which will add around £1.40 per week onto the average band D property (excluding the GLA element) from next April.
Cllr Twomey added: “This is a really difficult decision for us to make. We know it won’t be welcome news and it isn’t a decision we ever take lightly, but without further backing from the government, we are left with no choice but to raise Council Tax to help ease the severe pressures on our budget.
“Everything costs more than it did a year ago, demand on our services has increased, but the money given to us just doesn’t cover what’s needed. We need the government to finally show up and fund councils like ours adequately, based on our population and deprivation levels.
“Earlier this week, the Government announced a provisional funding settlement for local councils, but it doesn’t provide anywhere near enough funding to meet our severe cost and demand pressures.
“Councils in England continue to face a funding gap of £4 billion over the next two years because the announcement doesn’t change the gap councils face this year and next. It’s beyond belief that the government hasn’t provided desperately needed new funding for local services in 2024/25.
“We are doing everything we can to urgently press Government for more money. Councils all over the country are finding themselves in dire financial straits and we desperately need a better deal. We’re calling on the government, in the strongest possible terms, to provide fair funding so we can provide the services and support our residents need.”
Have your say
Residents can have their say on the council’s 2024/25 budget proposals here. The consultation will close on Sunday 21 January 2024.
Residents can also tune in to a special budget Facebook Live Q&A with Councillor Rodwell, Leader of the Council and Councillor Twomey, Deputy Leader and Cabinet Member for Finance, Growth and Core on Tuesday 16 January, between 6 – 7pm on the Leader’s Facebook page.
Residents can submit a budget question ahead of the session by emailing socialmedia@lbbd.gov.uk.