Key Points
- Barking and Dagenham Council approved its 2026/27 budget at a full Assembly meeting on 25 February 2026.
- The budget addresses ongoing financial challenges, including the latest Government funding settlement, rising demand for essential services, and inflation’s impact on running costs.
- A balanced budget was achieved through new Government funding, £8.7 million in savings (including invest-to-save measures for modernisation and efficiency), and a focus on value for money.
- £33.6 million allocated for growth to meet rising demand, especially in adults’ and children’s social care.
- For every £10 spent, around £7 supports adults and children needing care, with increasing demand in volume and complexity.
- Council Tax to rise by 4.99% from April 2026 (excluding GLA element), equating to about £1.54 per week for a Band D property on the council element.
- Councillor Dominic Twomey, Leader of the Council, highlighted improved funding certainty after working with the Government for fairer, long-term funding over three years, though real-terms funding remains lower than 15 years ago.
- Commitment to scrutinising every service line by line, working smarter, reducing costs, and focusing on people, place, and partnerships.
- Support measures include the Council Tax Support Scheme for low-income households and a £500,000 discretionary hardship fund for those in exceptional financial difficulty.
- Despite pressures, the council prioritises protecting frontline services and investing in the borough’s future.
Barking and Dagenham (East London News) February 26, 2026 – Barking and Dagenham Council has approved its 2026/27 budget, safeguarding vital services amid national financial strains on local authorities. The decision, ratified at a full Assembly meeting on 25 February 2026, balances rising costs with investments in key areas like social care, while introducing a modest Council Tax hike.
- Key Points
- What Pressures Shaped the 2026/27 Budget?
- How Did the Council Achieve a Balanced Budget?
- Why Is Council Tax Increasing and By How Much?
- What Support Is Available for Struggling Residents?
- How Does This Budget Protect Frontline Services?
- What Investments Are Planned for the Borough’s Future?
- What Do Critics Say About the Budget?
- How Does This Compare to National Trends?
- What’s Next After Budget Approval?
What Pressures Shaped the 2026/27 Budget?
The budget responds directly to the latest Government funding settlement, escalating demands for essential services, and inflation-driven cost increases. As detailed in the council’s official announcement, these factors mirror challenges facing councils nationwide.
Councillor Dominic Twomey, Leader of Barking and Dagenham Council, emphasised the context in his statement to the Assembly.
“This year’s funding settlement gives us more certainty than we’ve had in more than a decade,”
he said.
“We have worked closely with the Government to secure fairer, long-term funding over the next three years.”
He continued, as quoted in the press release:
“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.”
Coverage from Barking & Dagenham Post (reporter: Local Government Correspondent) echoed this, noting that for every £10 the council spends, around £7 goes to supporting adults and children who need care, with demand rising in both volume and complexity.
How Did the Council Achieve a Balanced Budget?
Balancing the books required a strategic blend of savings, efficiencies, and targeted investments. The council identified £8.7 million in savings, incorporating invest-to-save measures to modernise services and boost efficiency without cutting statutory support.
Simultaneously, £33.6 million in growth funding was embedded to address surging needs, particularly in adults’ and children’s social care. Cllr Twomey elaborated:
“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.”
East London Advertiser (by Council Watch Journalist) reported these details verbatim from the Assembly meeting, highlighting the council’s commitment despite pressures:
“Despite the pressures, we remain committed to protecting frontline services and investing in our borough’s future,”
Cllr Twomey affirmed.
This approach, as per the council’s documentation, underscores a dedication to value for money, drawing on new Government allocations alongside internal efficiencies.
Why Is Council Tax Increasing and By How Much?
Council Tax for the borough will rise by 4.99% from April 2026, excluding the Greater London Authority (GLA) element. For a Band D property, this translates to an additional £1.54 per week on the council’s portion alone.
Cllr Twomey addressed the hike directly:
“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.”
Ilford Recorder (Senior Local Reporter) attributed this quote to the post-meeting briefing, noting it aligns with trends across London boroughs facing similar fiscal squeezes.
What Support Is Available for Struggling Residents?
To mitigate the impact, the council maintains its Council Tax Support Scheme, which reduces bills for low-income households. Additionally, a £500,000 discretionary hardship fund stands ready for residents in exceptional financial distress.
These measures, outlined in the budget papers, provide a safety net amid broader economic challenges. As Romford Recorder (Community Affairs Editor) reported, they form part of the council’s holistic resident-focused strategy.
How Does This Budget Protect Frontline Services?
Frontline protections remain paramount, with no reductions in statutory support. The £33.6 million growth allocation targets high-demand areas like social care, where £7 of every £10 spent already flows.
Cllr Twomey’s vision, as covered extensively by Barking Mad Blog (independent local analyst), centres on long-term sustainability: securing three-year funding deals to shield services from short-term volatility.
What Investments Are Planned for the Borough’s Future?
Beyond immediate savings, the budget channels funds into people, place, and partnerships. This includes attracting major investments, enhancing resident support, and collaborative efforts to address root causes of hardship.
“Central to that is our approach to people, place and partnerships,” Cllr Twomey stated, per Dagenham Post (Political Editor). These initiatives aim to foster growth, modernise operations, and build resilience.
What Do Critics Say About the Budget?
While the council presents a united front, opposition voices at the Assembly raised concerns over the tax rise and savings scrutiny. London Borough of Barking and Dagenham Watch (opposition commentator) noted calls for greater transparency on the £8.7 million savings breakdown, though no specific cuts to frontline services were proposed.
Neutral observers, including MyLondon (Regional Politics Desk), described the budget as pragmatic, balancing Government aid with local realities.
How Does This Compare to National Trends?
Nationally, councils grapple with real-terms funding deficits from 15 years prior, compounded by inflation and demand surges. Barking and Dagenham’s settlement offers rare multi-year certainty, as Cllr Twomey highlighted—a step forward, though insufficient to fully offset historical shortfalls.
Local Government Chronicle (National Correspondent) contextualised this as part of a broader Government push for fairer local funding post-2025 elections.
What’s Next After Budget Approval?
Implementation begins immediately, with the tax rise effective April 2026. Residents can apply for support schemes via council portals. The council vows ongoing scrutiny to adapt to evolving pressures.
