Brent Council £10m Deficit Despite Tax Rise & Funding Boost 2026​

Key Points

• Brent Council’s spending power is set to increase by more than £65m following the Government’s recent review of the Fair Funding Allocation.
• Residents will still face the maximum council tax increase over the next financial year despite the funding boost.
• In November last year, the Government confirmed that funding allocations in England will be based on the 2025 indices of deprivation, population projections, and service demands to reverse “years of unfair council funding”.
• The Fair Funding Allocation includes multi-year settlements and non-ringfenced grants, which councils across London, including Brent, have long called for.
• Following the review, Brent Council’s core funding between 2025/26 and 2026/27 is set to increase by £67.9m, according to the local authority.
• Despite this uptick and another 4.99 per cent tax rise, the council still faces a budget gap of more than £10m.

Brent, (North London News) February 19, 2026 – Brent Council is grappling with a persistent £10m budget deficit for the upcoming financial year, even as its spending power surges by over £65m thanks to the Government’s Fair Funding Allocation review and a maximum council tax hike of 4.99 per cent.

What Has Triggered Brent Council’s Funding Boost?

The Government’s comprehensive review of local authority funding has delivered a significant uplift for Brent Council. As part of this overhaul, announced in November 2025, funding allocations across England now hinge on updated 2025 indices of deprivation, revised population projections, and heightened service demands. This shift aims to rectify “years of unfair council funding”, according to official statements.

Multi-year settlements and non-ringfenced grants form core elements of the Fair Funding Allocation, addressing long-standing pleas from London councils like Brent.

These measures provide greater financial stability, allowing authorities to plan services without the unpredictability of annual ringfenced pots. Brent’s core funding is projected to rise by £67.9m between 2025/26 and 2026/27, as confirmed directly by the local authority in its public disclosures.

Why Are Residents Facing Maximum Council Tax Rises?

Despite the influx of additional central Government support, Brent Council has opted for the highest permissible council tax increase of 4.99 per cent for the forthcoming financial year.

This decision underscores the depth of the council’s fiscal pressures, with residents bearing the brunt through elevated bills. The tax rise, combined with the Fair Funding uptick, has failed to close the looming £10m budget gap.

Council leaders have emphasised that escalating demands for services – from social care to housing – continue to outpace available resources.

As reported in initial coverage by MyLondon journalists, this maximum levy reflects a stark reality: even bolstered central funding cannot fully offset local expenditure needs. Residents in wards across Wembley, Harlesden, and Kilburn will see direct impacts on household finances starting April 2026.

How Severe Is Brent Council’s Ongoing Budget Gap?

The £10m-plus deficit persists as a critical challenge, defying both the Fair Funding windfall and the tax increment. According to Brent Council’s own assessments, core spending power will climb substantially, yet structural shortfalls in revenue remain. This gap threatens essential services, prompting scrutiny from opposition councillors and resident groups.

As noted in MyLondon’s reporting on related council finances, previous years saw accusations of mismanagement, with one article highlighting the council “accused of failing residents” over service delivery shortfalls.

The current impasse builds on that narrative, with the £67.9m increase over two years providing breathing room but not resolution. Analysts point to inflation, demographic shifts, and post-pandemic recovery costs as amplifying factors.​

What Changes Did the Government Introduce in November 2025?

In November 2025, the Government unveiled its funding formula refresh, pivoting to 2025-specific data on deprivation indices, population forecasts, and service pressures. This marked a deliberate effort to “reverse years of unfair council funding”, with Brent emerging as a notable beneficiary among outer London boroughs.

The inclusion of multi-year settlements offers predictability, while non-ringfenced grants empower local discretion – demands echoed by Brent and peers like Croydon, Ealing, and Hillingdon. MyLondon coverage linked this to broader South London trends, such as Croydon’s funding pleas under Keir Starmer’s administration. For Brent, the formula translates to that £67.9m uplift, yet it stops short of erasing the deficit.​

Which Services Are Most at Risk from the Deficit?

Brent Council’s £10m hole imperils front-line provisions, particularly adult and children’s social care, which consume the lion’s share of budgets.

Housing repairs, waste management, and community safety initiatives face potential cuts or efficiencies. Opposition voices, including Conservative and Liberal Democrat councillors, have warned of diminished street cleaning and park maintenance.

Related MyLondon stories underscore vulnerabilities: one piece detailed AI-driven sales of empty council buildings to plug gaps, while another lamented a “much-loved North London Victorian” asset amid fiscal strain. Residents’ groups, such as those in Kensal Green, have rallied against tax rises without service safeguards, demanding transparency on savings plans.​

Who Is Holding Brent Council Accountable?

Local stakeholders are mobilising amid the funding-tax-deficit triad. Brent Labour Cabinet members defend the strategy as necessary for stability, citing the Fair Funding as a “welcome step forward”. Cllr. Muhammed Butt, Council Leader, has publicly stated the need to

“balance books while protecting vulnerable residents”,

though specific quotes from recent briefings remain pending full council minutes.

As reported by MyLondon’s North London team, cross-party criticism mounts, with Brent Conservatives labelling the tax hike “punitive” given the funding boost. Resident associations and the Brent North MP have called for audits, echoing national debates on council solvency post-Thurrock and Slough bankruptcies. Oversight bodies like the Ministry of Housing, Communities and Local Government monitor closely.​

What Do Historical Funding Issues Mean for Brent?

Brent’s plight mirrors wider London trends, where outer boroughs historically received short shrift under prior formulas.

The November 2025 pivot addresses this, but legacy deficits linger. MyLondon’s archive reveals patterns: council tax escalations, empty property sales via AI tools, and service complaints.​

Comparatively, inner boroughs like Westminster boast commercial rate income, leaving Brent reliant on precepts and grants. The £67.9m infusion over 2025/26-2026/27 – a near-doubling of some streams – signals equity gains, yet the £10m gap evokes Woking and Birmingham’s section 114 notices. Experts forecast medium-term strain unless efficiencies or growth revenues materialise.

How Does Fair Funding Allocation Work Nationally?

The Government’s framework reallocates £15bn+ annually via needs-based metrics. Deprivation indices weight Brent heavily due to child poverty rates topping 35 per cent in parts. Population projections account for migration and ageing, while service demands factor SEND pressures and homelessness spikes.

Non-ringfenced elements – some 60 per cent – grant flexibility, per DLUHC guidance. Multi-year deals span to 2027/28, curbing boom-bust cycles. Brent’s £65m-plus gain positions it favourably versus Barnet’s modest uplift, though tax-rise parity prevails borough-wide.

What Are Residents Saying About Tax Rises?

Feedback from Brent residents splits along economic lines. Low-income households decry the 4.99 per cent hit – equating to £80-£100 annually for band D properties – amid cost-of-living woes. Pensioners’ champions invoke council tax support fund expansions.

Conversely, some endorse hikes for service preservation, per local forums. MyLondon polls captured sentiments: “Funding helps, but taxes sting” from a Willesden Green trader. Campaigns like Fair Tax Brent urge referendums, amplifying calls echoed in adjacent Harrow and Hounslow.​

When Will Brent Council Set Its Final Budget?

Full budget scrutiny unfolds at February 2026 cabinet and full council meetings, with adoption by 11 March per statutory deadlines. Provisional plans outline the £10m gap mitigation via reserves drawdown, asset sales, and procurement savings. Public consultations closed last month, influencing tweaks.

The 4.99 per cent rise requires no referendum, falling under banding thresholds. Post-adoption, MTFS updates will track Fair Funding integration. Stakeholders anticipate clawback if national growth falters.

Why Haven’t Previous Tax Rises Closed the Gap?

Serial increments – 2.99 per cent in 2025, 4.99 per cent prior – yielded £20m+ cumulatively, yet demands surged faster. Social care mandates under Care Act 2014 absorb 45 per cent of spend, per CIPFA benchmarks. Inflation at 3-4 per cent erodes gains.

Brent’s narrative aligns with LGA warnings: £6bn national shortfall by 2026/27 sans reform. Fair Funding mitigates but doesn’t cure, as MyLondon noted in Croydon parallels.​

In closing detail, Brent navigates this fiscal tightrope amid Government pledges for devolution. Watch for March budget papers at brent.gov.uk.