Barking and Dagenham Council faces £28m budget gap for 2027‑28
The borough expects day‑to‑day costs of £331m but funding of £303m, leaving a shortfall that has risen sharply since February.
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Barking and Dagenham Council told residents on 15 September that it expects a £28 million budget gap for the financial year running from April 2027 to March 2028. The shortfall will have to be covered by cuts, savings or changes to service delivery, affecting programmes that the council is legally required to provide.
Financial picture for 2027‑28
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The council’s own forecasts put day‑to‑day costs at £331 million for the year. Total projected funding stands at £303 million, leaving the £28 million gap. The figures were disclosed in papers presented to council leaders on 15 September, as reported by the Standard.
Why the gap has widened
The papers say that “sustained and intensifying demand” on essential services is behind the increase. They highlight adult social care, children’s social care, temporary accommodation and services for children with special educational needs and disabilities as the areas where demand has risen most sharply. Wider economic pressures such as inflation, higher interest rates and national fiscal policy were also mentioned.
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Balancing next year’s budget remains achievable but will require difficult decisions.
Rocky Gill, finance councillor
Labour finance councillor Rocky Gill told fellow Labour leaders that traditional savings routes will not be enough. He said the council must change the way it works to become more efficient. Gill also noted that a recent government shake‑up of local authority grants added an estimated 11.5 % to funding, but that increase still falls short of historic cuts and rising demand.
Adult‑care councillor Maureen Worby called for a national fix, saying a planned reform could bring new models of care between councils and health services. Council leader Dominic Twomey warned that the cost of placing children in private care homes had risen by 25 % across London, adding further pressure to the budget.
The council said it will “chip away” at the overspend and expects the figure to be smaller by year‑end. Residents can expect the council to publish details of any service reductions or efficiency measures as they are finalised.
Questions this report answers
+What is the size of the budget gap for 2027‑28?
The council projects a £28 million deficit for the financial year April 2027 to March 2028. This shortfall results from projected day‑to‑day costs of £331 million against total funding of £303 million, and will need to be addressed through cuts or efficiencies.
+Why has the gap increased since February?
In February the council forecast a £6.2 million shortfall. By September, papers to leaders said rising demand for adult and children’s social care, temporary accommodation and special‑educational‑needs services, combined with inflation and other economic pressures, pushed the projected gap to £28 million.
+Which services are driving the higher costs?
The council’s papers point to adult social care, children’s social care, temporary accommodation and services for children with special educational needs and disabilities as the main cost drivers. These areas have seen sustained and intensifying demand, according to the documents presented on 15 September.
+What steps is the council planning to take?
Council finance councillor Rocky Gill said traditional savings will not suffice and that the council must change its working methods to become more efficient. The council has pledged to “chip away” at the overspend and will publish details of any service reductions or efficiency measures as they are finalised.
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