Council tax will also be rising by the maximum 5% allowed if current budget plans for 2026/27 are approved, reports James Cracknell

Another £10.5million of spending cuts plus a 5% tax hike are being planned by Enfield Civic Centre despite the recent boost to council coffers offered by the government’s Fair Funding Review.

Last month the council learned that it would be enjoying the biggest percentage boost to central funding of any London local authority over the next three years – with a 58% increase to its ‘core spending power’ – after the government completed its review of local funding formulas to take greater account of rising deprivation and housing costs.

This means the council should be able to draw from an additional £203m in funding from all sources between now and 2029, with an immediate boost of £47.5m for 2026/27.

However, a draft budget report being presented to councillors on the overview and scrutiny committee this Monday (19th) explains that although Enfield Council will not this year need to apply to the government for exceptional financial support (EFS), a total of £15.4m of savings are still needed – comprising the £10.5m in cuts from “service redesign, efficiencies, and demand management” as well as a further £4.9m from “income generation”.

Yet another 4.99% council tax rise is also proposed, the highest increase permitted.

This time last year the council was forced to ask the government for a total of £30m in EFS, with £20m to cover previous overspending and £10m needed to balance its 2025/26 budget. Even with that extra cash, the council had to use £5m from its own reserves to avoid issuing a Section 114 notice – narrowly avoiding effective bankruptcy.

This year’s budget-setting process has been complicated by the uncertainty over the outcome of the government’s long-awaited Fair Funding Review but, with the good news that arrived shortly before Christmas, the council will soon be seeking approval for its 2026/27 budget proposals.

Explaining why cuts are still necessary, the latest report written by the civic centre’s head of financial strategy Neil Goddard reveals that the council has again overspent on this year’s budget.

“The current forecast for 2025/26 is a £7.5m overspend primarily driven by sustained demand in adult social care (£5.3m), children’s services (£3.3m) and the provision of temporary accommodation (£1.8m),” Goddard states.

He continues: “Demand pressures are continuing to increase. £46m of pressures are forecast for 2026/27 when compared to the 2025/26 budget.

“The most significant pressures for 2026/27 are forecast to be: £16m adult social care from demographic demand, inflation, and bad debt provision; £7m children’s social care from demand for external care purchasing; £7m for pay award [salary increases]; £4m for increased demand in temporary accommodation, £3m for capital financing; £2m for NLWA [North London Waste Authority] and concessionary fare levies.”

Further details of the cuts proposed by the council this year will be set out in the coming weeks, with all councillors due to debate and vote on the final budget plans on Thursday, 26th February.

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