Greenwich Council is facing financial headwinds, including a projected £7.2 million overspend and a £7.4 million deficit in its Dedicated Schools Grant (DSG), according to a recent cabinet meeting. The Public reports pack indicates that the £7.2 million overspend includes departmental overspends and corporate items.

The council's forecast outturn position as of the end of Quarter 2 for 2025-2026 was presented to the cabinet on Wednesday, 3 December 2025. The report also noted a £2.4 million overspend in the Housing Revenue Account (HRA).

The Housing Revenue Account is forecasting an overspend of £2.4m. The main reasons for this are:

  • Legal disrepair of £1.4m due to claims remaining relatively high in common with other London authorities. The housing service are currently reviewing spend and processes with the aim of reducing expenditure in this area.
  • Home Ownership service is forecast to overspend by £1m, due to lower income forecast from leaseholder service charges than budgeted and additional spend on staff to clear the backlog of Right to Buy applications received, arising from the legislative changes in the Right to Buy discount.

According to the Public reports pack, there is a projected slippage of £8.6 million against the total savings target of £36.1 million.

Councillor Denise Hyland, Cabinet Member for Finance, Resources and Social Value, introduced the item, noting positive progress since Quarter 1 to bring expenditure in line with the budget. She stated that both service and corporate budget positions had improved, as had the delivery of savings.

However, the report also prompted questions about the council's level of debt. In response, the Director of Resources reassured the Cabinet that the majority of the council's underlying need to borrow is through initial provision, particularly housing initiatives like Greenwich Builds. He stated that the debt is sustainable and prudent, comparing it to a manageable mortgage. During discussion of Item 8, Treasury Management and Capital Quarter 2 Mid-Year Update, the Director of Resources stated that the majority of our underlying need to borrow is through the initial provision, which we're housing, so that's anything from sort of Greenwich Builds sort of onwards.

Councillor Pat Slattery, Cabinet Member for Housing Management, Neighbourhoods and Homelessness, expressed gratitude that the council is using its capacity to borrow prudently to improve the lives of working people in the borough and promote equality.

The full agenda and reports pack for the meeting can be found on the Greenwich Council website.