Redbridge Council is grappling with a significant budget shortfall, with a projected overspend of £42.033m for the 2025/26 financial year. The news comes from the Budgetary Control Report for Quarter 1 2025/26 presented at a recent cabinet meeting. The report highlights that unless significant inroads are made in reducing the forecast overspend, the council's financial resilience will be exhausted, potentially requiring Exceptional Financial Support to set the 2026/27 budget.
The report, which was discussed at the Redbridge Council cabinet meeting on 11 September 2025, reveals that the overspend is spread across various directorates, with £21.601m in Place, Communities & Enterprise, £22.457m in the People Directorate, £2.346m in Strategy and £0.129m for Resources.
The report pack stated that the forecast level of overspend in 2025/26 was of grave concern, principally caused by the costs and demands seen in social care and homelessness.
According to the report, if all planned and identified cost-saving measures were successfully implemented, the overspend could be reduced to £34.074m. However, the report also noted that the forecast level of overspend was a matter of grave concern
, primarily driven by increasing costs and demands in social care and homelessness services. The Budgetary Control Report for Quarter 1 2025/26 specifically identifies these areas as the principal cause of the projected overspend.
The council faces tough decisions as it seeks to address the budget overspend and ensure the continued delivery of essential services for Redbridge residents.
