“Frontline services” set to be protected in 2026/27 budget but back-office cuts and cash-raising proposals still needed to balance books, reports James Cracknell

Enfield Council’s budget report for 2026/27 pledges to “protect frontline services” for the year ahead after a “very positive” funding settlement from the government.

Set to be debated and approved by councillors at a full council meeting next week (Thursday 26^th), the budget report published in advance of the meeting states that even while making just under £12million of “savings” made up of various department “efficiencies” and income-raising proposals, “no reductions to the essential support our residents rely on” need to be made.

The report confirms, however, that council tax will be rising by the maximum 4.99% allowed.

The backdrop to this budget has been the boost to council coffers brought about by the government’s Fair Funding Review, with the council set to enjoy a 58% rise in ‘core spending power’ over three years – the biggest percentage increase of any London borough.

The 2026/27 budget report now confirms that for next year the direct uplift of government funding amounts to £54.6m, with another £10.3m generated from growing council tax revenues.

But most of this additional cash is effectively being swallowed up by the soaring cost of providing services that the council must provide by law – such as an additional £19.3m on adult social care, £6m on children’s social care, and £5.4m on temporary accommodation for homeless families. There are also rising costs resulting from salary increases and growing debt repayments.

This time last year, the council was on the brink of effective bankruptcy. It was an outcome only avoided at the eleventh hour by £30m-worth of ‘exceptional finance support‘ offered by government. The Fair Funding Review means that this delicate financial situation has at least stabilised, and should improve further in future years.

Neil Goddard, the council’s head of financial strategy, explains in this year’s budget report to councillors: “The government has fundamentally changed the way funding is allocated to councils through the Fair Funding 2.0 review, reflecting longstanding lobbying by elected members and officers for funding that better aligns with levels of deprivation and need.

“The significant increase in core funding and the council’s disciplined financial approach, has been able to protect frontline services, with no reductions to the essential support our residents rely on being proposed in this budget.”

However, the budget still includes £9.8m of cuts to back-office functions and £2.2m in income-raising plans, including a range of hiked fees and charges for council services.

The cuts include potentially contentious reduction in spending on special needs transport, with an efficiency review earmarked to save £388,000.

Among the creative ideas for generating extra income included in the budget is a proposal to bring in £154,000 from hire charges at a new padel court facility.

Goddard adds: “The council is now in a far stronger position to manage future pressures but recognises that the next three years must be utilised to transform and prepare for future challenges. This [government] settlement is a once in a generation opportunity to do that.”

The 2026/27 budget also includes a boost to the council’s reserves, of around £8m, after they were severely depleted last year as the civic centre scrambled to set a balanced budget.

Olga Bennet, the council’s chief finance officer, writes in the budget report: “The council’s reserves have progressed from a critically low position to a low but improved position. This budget allocates a proportion of the annual growth specifically to strengthen risk reserves, aiming to reach adequate levels within the next three years.”

Next week’s budget-setting meeting could also see councillors debate an alternative set of proposals from the opposition Conservatives, who are aiming to take control of the civic centre after the local election on 7^th May.

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