Barnet UNISON Member Update – Fair Funding Review 2.0

Anti - Racism, Austerity, Local, Solidarity, UNISON Campaign

Local Government Funding Reform – What It Could Mean for Us

Dear Barnet UNISON Members,

We are writing to update you on an important national consultation launched by the government – the Fair Funding Review 2.0 – which will overhaul how councils like Barnet are funded from 2026–27 onwards.

You can view the report online here https://www.gov.uk/government/consultations/the-fair-funding-review-20

Or download the report click on the link below

Fair_Funding_Review_2.0

 

Why This Matters

As many of you know, Barnet Council applied for Exceptional Financial Support (EFS) this year due to significant financial pressures. This was followed by a round of staff redundancies, and understandably, many of our members are now concerned about the possibility of further cuts or job losses.

This Fair Funding Review is critical because it will shape how much money councils receive to deliver local services. It is intended to simplify the funding system and make it “fairer,” but the full impact is still unclear.

Potentially Positive News

  • New National Funding: £5 billion of new government funding is planned over the next three years, including £3.4 billion in core grants.
  • Multi-Year Settlements: From 2026–27, councils will receive funding certainty for several years, which may help avoid the sudden budget shocks we’ve seen recently.
  • Updated Formulas: Funding will be more closely tied to local need and the cost of delivering services like adult and children’s social care. If done correctly, this could work in Barnet’s favour, given our demand levels.
  • Grants Consolidated: Smaller, short-term funding pots are being rolled into larger grants or the main Revenue Support Grant – giving councils more flexibility.

Areas of Concern

  • No Council Allocations Yet: We do not yet know how Barnet will be affected. Specific funding figures for each council will be announced later this year.
  • Zero Allocations Possible: Some councils could receive no central funding at all if the government thinks they can fund services from local Council Tax alone. The government is reviewing how to avoid this scenario.
  • Efficiency Expectations: The review hints at local government “reorganisation” and “efficiencies” – which often means job cuts.
  • Transitional Pressures: While there will be protections during the transition, councils under existing financial strain – like Barnet – may still be at risk of further workforce reductions to balance their books.

 

What UNISON Is Doing

  • We are closely reviewing this consultation and will submit responses where appropriate.
  • We are actively engaging with Barnet Council officers to understand how they are modelling the impact of the review and whether further redundancies are being planned.
  • We will demand transparency and insist that UNISON is consulted before any further cuts are considered.

 

What You Can Expect

  • We will provide further updates as more information becomes available:
  • When the government publishes council-by-council indicative funding in the autumn
  • When Barnet Council shares its 2026–29 financial projections
  • If any consultation on workforce changes is proposed

If you have concerns or want to speak with your local UNISON rep in confidence, or email the branch at contactus@barnetunison.org.uk

Solidarity,

Barnet UNISON.

 

End.