Barking and Dagenham Council has agreed its budget for 2026/27, setting out how it will continue protecting vital services amidst ongoing financial challenges facing councils across the country.

The budget was approved at a full Assembly meeting on 25 February 2026 and reflects the latest Government funding settlement, rising demand for essential services, and the impact of inflation on running costs. 

Despite these pressures, the council has set a balanced budget for 2026/27, supported by a mix of new Government funding, savings and efficiency measures, and a continued focus on delivering value for money. 

Councillor Dominic Twomey, Leader of Barking and Dagenham Council, said: “This year’s funding settlement gives us more certainty than we’ve had in more than a decade. We have worked closely with the Government to secure fairer, long-term funding over the next three years. 

“While one round of government funding decisions can’t make up for the previous 15 years, it helps the council to better protect the services that matter most to residents, while we ensure every pound of the tax you pay delivers the best possible value.

“But despite this, our funding is still significantly lower in real terms than 15 years ago. Costs have risen, demand for services has increased, and like councils across the country, we face significant financial pressures.” 

For every £10 the council spends, around £7 goes to supporting adults and children who need care, and demand continues to increase both in volume and complexity. 

Savings and investment

To balance the budget for 2026/27, the council has identified £8.7 million of savings, including invest to save measures that will modernise services and improve efficiency without reducing statutory support. 

At the same time, the council is investing in priority services, with £33.6 million of growth built into the budget to meet rising demand - particularly in adults’ and children’s social care. 

Cllr Twomey added: “Every service has been scrutinised line by line. We’ve challenged ourselves to work smarter, reduce costs, and focus on what matters most. And central to that is our approach to people, place and partnerships - attracting major investment into our borough, strengthening the support we offer residents, and working with our partners to tackle the root causes that prevent people from living the best life possible.

“Despite the pressures, we remain committed to protecting frontline services and investing in our borough’s future.”

Council Tax

Council Tax will increase by 4.99% from April 2026 (excluding the GLA element). This represents an increase of around £1.54 per week for a Band D property for the council element. 

Cllr Twomey said: ‘Almost all London councils have had to raise Council Tax by the full amount and although we know an increase is never welcome, it’s vital to ensure we can continue delivering the core services our community counts on - from children’s support and adult care to the essential work that keeps our borough running well.”

Residents who are in low income households can access the Council Tax Support Scheme, which helps reduce the amount of Council Tax they need to pay. The council is also maintaining a £500,000 discretionary hardship fund to provide extra support for residents facing exceptional financial difficulty. 

Residents can find out more about the support that’s available here: Benefits and support | London Borough of Barking and Dagenham

Delivering for residents

Despite the financial challenges, the council has continued to deliver major improvements for local people over the past year, including:

• Cleaner streets and neighbourhoods through the CleanerBD campaign, backed by new cleansing trucks to tackle flytips quickly and target hotspot areas, as well as a FREE bulky waste collection pilot allowing residents to book up to four items per collection (launching week beginning 2 March)
• Significant investment in community safety, working with partners on youth support, knife crime, education, and rapid deployment CCTV.     
• A major new NHS dental training centre at Maritime House, delivered with Queen Mary University of London, which will treat up to 5,000 residents a year later in the year.
• £2.8m of investment in community spaces, CCTV and neighbourhood improvements, funded through Government Pride in Place funding and the council’s Strategic Community Infrastructure Levy - the biggest ever single investment into our neighbourhoods.
• Thousands of residents supported into work and training, and continued strong school performance with 9 out of 10 schools rated good or outstanding. 

Cllr Twomey said: “Barking and Dagenham has always been ambitious, resilient and proud. Even in difficult circumstances we continue to deliver for our residents, attract investment, create opportunities and improve services. This budget protects essential services while keeping our long term ambitions on track.”