Brent Council reports £18.3m overspend amid housing and care pressures
Nearly 8,000 homelessness applications and rising adult social care costs drove the deficit in 2025/26
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Brent Council ended the 2025/26 financial year with an £18.3 million overspend on its general fund, a deficit it attributed to rising demand in adult social care and homelessness services. The council used reserves to cover the shortfall, as reported by MyLondon on 29 July 2025.
The overspend was split between two key areas. Adult social care exceeded its budget by £7 million, while housing services, including temporary accommodation, overspent by £11.7 million. Brent Council received nearly 8,000 homelessness applications in the past year, a 40% increase on the previous year.
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Cuts and reserves used to balance budget
To offset the overspend, Brent Council made £20.4 million in cuts across services. The council described the financial year as “another demanding year” in its year-end report. Despite the cuts, the council stated it cannot address systemic issues such as housing affordability or care market costs through reductions alone.
Cllr Gwen Grahl, Brent Council’s Deputy Leader and Cabinet Member for Finance and Resources, said the pressures stem from factors outside the council’s control. She cited an ageing population, rising private rents, and a care market where costs outpace available funding. As of April 2025, more than 1,400 households were living in nightly-paid accommodation.
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These are not pressures that can simply be switched off. They're the consequences of many other factors outside Brent's control.
Cllr Gwen Grahl, Brent Council Deputy Leader
The council’s financial report also noted a £6.6 million deficit in the dedicated schools grant. However, the housing revenue account broke even, and historic debt fell by £23.7 million, the first reduction in five years. Council tax and business rate collection rates improved, reaching 91.6% and 94.1% respectively.
Council calls for government intervention
Brent Council leaders emphasised that local cuts cannot resolve broader systemic issues. Cllr Grahl stated the council will continue to address problems directly but called for “better action” from central government to reform housing, care, and Special Educational Needs and Disabilities (SEND) systems.
Cllr Muhammed Butt, Leader of Brent Council, said the council is managing overspends while delivering services. He acknowledged ongoing pressures in adult social care and homelessness but expressed confidence in the council’s ability to navigate the challenges. No date has been set for further financial updates.
What happens next
Brent Council’s financial report will be discussed at the next Cabinet meeting, though no date has been confirmed. Residents can review the full report on the council’s website. No changes to council tax or business rates have been announced as a result of the overspend.
Questions this report answers
+How much did Brent Council overspend in 2025/26?
Brent Council reported an £18.3 million overspend on its general fund for 2025/26. The deficit was covered using reserves set aside for financial pressures, as stated in the council’s year-end report.
+Why did Brent Council overspend?
The overspend was driven by £7 million in adult social care and £11.7 million in housing services. Rising homelessness applications and care costs contributed to the deficit, according to Brent Council’s financial summary.
+What cuts did Brent Council make?
Brent Council made £20.4 million in cuts during 2025/26 to offset the overspend. The council stated these reductions were necessary to continue delivering essential services amid rising demand.
+What happens next after the overspend?
The financial report will be discussed at Brent Council’s next Cabinet meeting. No immediate changes to council tax or business rates have been announced, and residents can review the report on the council’s website.
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