Funerals offered by Brent Council are likely to be more expensive after its cabinet agreed to pursue plans to set up a new company to manage them.

Senior councillors approved suggestions by council officers to create a trading company in this area to potentially increase profits.

However, it means funerals offered by the council could rise from £1,250 for a basic burial – excluding plot costs – and £1,500 for a basic cremation to up to £3,200.

In a report presented to the council’s cabinet, officers admitted this “moves away” from the original low-cost funeral option offered to residents, but they believe there will be scope for price reductions “as the business builds”.

They also insist the new approach will continue to help reduce funeral poverty, while they pointed out the packages offered will remain cheaper than the UK average, which is estimated at £3,858.

Cllr Krupa Sheth, who is responsible for the environment at Brent Council, said it was the right way to deal with “increased demand” for such services.

And council leader Cllr Muhammed Butt said it will “allow us to continue to support people in their time of need and grief”.

The council anticipates that the new company could generate around £260,000 in yearly profits.

It added that there would be “significant opportunities to also tender for NHS contracts” alongside possibilities of working with other organisations across London.