Issue - meetings

To agree the 2026-27 general fund budget to be recommended to council assembly and to note the medium-term financial strategy update.

It was not possible to circulate this report five clear days in advance of the meeting. Urgent consideration was required to prepare a budget proposal for submission to council assembly. This was the last cabinet meeting before council assembly on 25 February 2026. The Local Government Act 1992 requires that billing authorities complete and approve their budgets and set a council tax before 11 March immediately prior to the start of the financial year on 1 April 2026.

Councillor Ian Wingfield, chair of the overview and scrutiny committee presented a summary of the committee’s recommendations to cabinet.

RESOLVED:

That the following recommendations be agreed for recommendation to council assembly:

1.  The balanced general fund budget proposals for 2026-27.

2.  In accordance with Sections 30 and 36 of the Local Government Finance Act 1992, the local council tax amounts shown in table 7 of the report.

That the following be approved:

3.  The housing revenue account (HRA) budget for 2026-27 (paragraphs 82 to 94 of the report).

4.  The final fees and charges schedule at Appendix B of the report.

That the following be noted:

5.  That the final Local Government Finance Settlement has not yet been published, any changes from the provisional settlement published on the 17 December 2025, will be set out in the 2026-27 budget report to council assembly on 25 February 2026.

6.  The update to the medium-term financial strategy (MTFS).

7.  That the MTFS, the transformation programme, ongoing budget demand and cost pressures and HRA budget were considered by the overview and scrutiny committee in January 2026 and that the recommendations arising, and officer responses are included at Appendix E of the report.

8.  The savings proposals at Appendix A of the report.

9.  The climate report and the budget equality analysis report 2026-27 (Appendices C and D of the report).

10.  That the Mayor of London draft budget for 2026-27 includes a proposal to increase the GLA Council Tax precept by 3%, equivalent to a £14.70 increase for a band D property.

11.  The GLA council tax precept is due to be set on Thursday 26 February, one day after council assembly sets the budget for Southwark; therefore, a council tax setting committee will be convened after that date.

12.  The content of the Section 25 statement by the strategic director of resources.

NOTE: In accordance with overview and scrutiny procedure rule 16.2, (a) (budget and policy framework) these decisions are not subject to call-in.