Key Points
- Brent Council faces a £10 million budget shortfall despite a planned 4.99% council tax rise.
- The council proposes using AI to redesign services and to sell or rent out empty buildings to generate income.
- Rising demand for temporary accommodation, adult social care, and children’s placements are causing financial pressures.
- The council seeks £10.4 million in savings through technology, partnerships with charities, better supplier deals, and improved data use.
- Opposition councillors describe the budget proposals as unrealistic or “pie in the sky.”
- The council aims to protect frontline services amid increasing demand and rising costs.
- Residents can give feedback on the draft budget proposal until 30 January 2026.
- Local elections are scheduled a few weeks after the budget ratification in February.
- Opposition parties criticise the Labour-led council for mismanagement and call for better government funding on homelessness and social care.
What is Brent Council’s current financial situation?
Brent Council has announced it faces a significant budget gap of around £10 million for the upcoming financial year, part of a projected £30 million shortfall over the next three years. This follows on from £16 million in cuts required to balance last year’s budget, as detailed by various local news reports including MyLondon. The council attributes this financial pressure to growing demand for essential services and inflationary costs that have affected many local authorities across the UK.
Council leaders emphasise the difficulty of the “perfect storm” of higher inflation and the legacy of austerity measures under the previous government, narrowing the resources available to meet increasingly complex social needs. As Councillor Mili Patel, Deputy Leader and Cabinet Member for Finance and Resources, stated as reported by journalist Ben Tio of MyLondon:
“A perfect storm of high inflation and the legacy of austerity under the last government means we now have less money to serve more people, whose needs are more complex, and whose services cost more to deliver.”
How does Brent Council plan to address the £10m budget hole?
To close the funding gap for 2026-27, Brent Council proposes raising council tax by the maximum allowed 4.99%, comprising a three per cent general increase and a two per cent hike in the adult social care precept. This tax rise is expected to generate approximately £9.1 million but will still leave a sizeable shortfall.
To make up the remaining £10.4 million, the council plans a series of “behind the scenes changes,” harnessing new technology, including artificial intelligence (AI), to redesign service delivery. These initiatives aim to make services more efficient, such as enabling residents to access support online more easily. Partnership working with local charities and community organisations will also form part of the approach, along with negotiating better supplier contracts and utilising data insights to target aid where it is most needed.
Another significant element involves capitalising on unused council assets. Brent intends to generate additional rental income from empty buildings or put them up for sale, as described by the council’s official draft budget documents. As Councillor Patel explained, the council is
“radically changing the way Brent Council works behind the scenes to ensure we are able to deliver the high-quality public services you need within the budget we have.”
What are the main pressures on Brent Council’s budget?
The council highlights increasing demand for specific social services, which place “immense strain on local services.” Cllr Patel specifically referenced the rising need for temporary accommodation, adult social care, and placements for children as critical cost drivers.
These demands reflect broader trends seen across London boroughs amid rising housing costs, increasing numbers of vulnerable residents, and growing care needs driven by demographic changes. For Brent, balancing these pressures against stretched finances remains a key challenge.
How are Brent Council leaders justifying the tax increase and proposed changes?
Council Leader Muhammad Butt places the budget deficit within the wider context of local government funding challenges, noting Brent is not immune to the “severe financial duress” affecting many councils nationwide. As reported by Sarah Jones of the Evening Standard, Cllr Butt said:
“Brent isn’t immune to these challenges, but we have continued to manage our finances responsibly over many, many years, allowing us to protect the frontline services that matter most.”
He stressed that the council’s focus is on efficiency and transformation, stating:
“We are now accelerating our programme to transform the way we work so we can continue to protect essential services. This isn’t an easy task but I’m pleased that most of our £10million financial plan will come from working more efficiently and effectively.”
Additionally, investments through the Neighbourhood Community Infrastructure Levy (NCIL)—funded by developers—have been approved to support community improvements such as CCTV installation, pothole repairs, and tree planting.
How are opposition parties reacting to Brent Council’s budget plans?
Opposition councillors have raised serious concerns about the realism and effectiveness of Brent Council’s proposals.
As the official opposition party on the council, the Conservative Group declined immediate comment pending a detailed analysis of proposed departmental savings.
Meanwhile, Brent’s Liberal Democrat leader, Councillor Paul Lorber, voiced strong criticism, conveyed through a MyLondon interview with journalist Sarah Trotman. He described the budget measures as “pie in the sky” and expressed scepticism that AI and better building utilisation could close the financial gap:
“If this is the answer they should have taken these simple measures a long time ago.”
Cllr Lorber went further to accuse the Labour leadership of mismanagement:
“Brent Council’s Labour leadership only passed their Budget in March 2025 and within six months it already has a £14m hole in it. In a state of panic, they have imposed a spending freeze.”
He also placed blame on the national Labour Government for failing to address key funding issues:
“The plain truth is that Brent has once again been badly let down by Labour who have promised the earth but delivered nothing. The solution lies in the Labour Government recognising their responsibility for tackling the homelessness crisis and under-funding of social care for adults and children by providing local authorities with the funds they need.”
What impact will the budget have on Brent residents?
Brent residents are encouraged to engage in the consultation process on the draft budget, with a deadline for feedback set for 30 January 2026. This offers an opportunity for the community to voice support or concerns about the council’s plans, including the tax increase, service redesign, and asset sales.
The council maintains that the budget proposals aim to safeguard frontline services despite austerity and rising demand, using innovation like AI to streamline processes and better meet resident needs.
However, the coming months are likely to see debate and scrutiny from opposition parties and local stakeholders, especially with local elections looming shortly after the budget ratification in February 2026.
What is the timeline for Brent Council’s budget approval and elections?
The draft budget proposals were approved by the Cabinet on 17 November 2025 and will go through a public consultation phase until the end of January 2026. The final budget decision is scheduled for ratification by full council in February 2026.
Following this, Brent’s local elections will take place a few weeks later. These elections will provide opposition parties with an opportunity to challenge the current leadership’s financial management and propose alternative approaches.
What services are most at risk if the budget gap is not resolved?
The council does not specifically identify services at immediate risk but indicates that rising costs and demand in adult social care, children’s placements, and temporary housing represent major financial burdens.
Given these priorities, it is clear that safeguarding these critical support services forms the core objective behind the budget planning. Councillor Patel’s comments emphasise protecting essential community services amid a difficult financial environment: “We are determined to rise to the challenge” of delivering public services within constrained budgets.
Brent Council’s financial strategy attempts to balance competing demands from residents needing support and the realities of funding pressures facing local government. The planned use of AI and other efficiencies illustrate how councils are increasingly turning to technological innovation to bridge gaps. Yet opposition parties remain critical, framing the measures as insufficient without increased central government funding.
