Redbridge Council's Cabinet has approved new savings totalling £7.253 million for the 2026/27 financial year as part of its budget proposals. These savings are a key component of the council's wider Medium Term Financial Strategy (MTFS), which aims to achieve a total of £42.674 million in savings over the strategy period, extending to 2030/31.
The decisions were made during a Cabinet meeting on Monday, January 19, 2026. The council acknowledged government announcements regarding the Local Government Finance Settlement, which indicated an increase of £61.5 million for Redbridge over three years. However, the council stated that this increase is insufficient to address historic underfunding and current overspending.
These savings are intended to protect essential services for residents and businesses amidst ongoing financial pressures. The budget proposals are driven by the Modernisation Programme, described as a decade-long period of austerity
response, which seeks to fundamentally reinvent council operations to ensure long-term financial sustainability. The Service Modernisation Programme will embed a new way of working, reshaping how services are accessed and delivered, and redefine how the council engages with residents, communities, and customers.
Savings are projected across various directorates, with significant contributions from Cross-Council initiatives totalling £37.656 million over the MTFS period. These savings will be achieved through several key areas: £15.931 million from Contract rationalisation across the Council with a focus on higher spend services
; £7.596 million from Establishing cross-service collaboration to address customer needs before they escalate via centralised tech-enabled service to reduce repeat contacts, improve satisfaction, enhance productivity, and reduce the cost of service
; and £14.129 million from the Service Modernisation Programme
itself.
The Cabinet also agreed to reversals of previous savings, totalling £9.467 million for 2026/27 and £18.177 million over the MTFS period. These reversals reflect adjustments to current expectations and the implementation of new efficiency measures.
Regarding the impact on council staff, the report states: There are no immediate staffing implications arising from this report. Any implications arising from these budget proposals as they are presented in future reports will be fully explained at that stage. It is however likely that, in order to meet its financial obligations, the Council's workforce will need to become smaller.
More details on the budget proposals can be found in the Public reports pack 19th-Jan-2026 19.00 Cabinet, and the Minutes 19th-Jan-2026 19.00 Cabinet.
