Bromley Council Faces £22m Funding Gap Due to Government Cuts and Rising Costs

23 January 2026

Bromley Council is facing a significant funding shortfall, with projections indicating a £22 million annual reduction in funding by 2028/29. This stark figure was revealed in a report presented to the Executive, Resources and Contracts Policy Development and Scrutiny Committee.

The provisional Local Government Finance Settlement for 2026/27 has been described as very disappointing for the borough, with the funding gap expected to escalate to £30.5 million in real terms by 2028/29. This substantial reduction is attributed to the government's Fair Funding 2.0 review.

Adding to the financial pressures are cumulative Dedicated Schools Grant (DSG) deficits and the ongoing need to fund the council's capital programme. The Director of Finance explained that budget changes were a result of inflation, growth cost pressures, and the impact of the council's transformation programme. Specifically, significant cost pressures in housing are contributing to these growth cost pressures.

The council's 'Transforming Bromley' programme aims to improve services, deliver savings, and mitigate growth. The Transformation Report 2024-2028 Two Year Progress Report 2025-26 indicates that during the first two years, 95% of the 138 initial opportunities identified had been progressed, leading to circa £50 million in identified savings. For the 2024/25 year, £18 million of savings were achieved. For 2025/26, an additional £32.5 million in savings were identified, contributing £29.3 million towards balancing the Medium Term Financial Strategy (MTFS) gap for 2026/27. The programme is intended to mitigate financial pressures by delivering these savings and efficiencies.

While the plan includes continuing to progress with the Transformation Programme and finding ways to reduce the continuing cost/growth pressures contributing to the 'budget gap' as well as finding ways to address the cumulative DSG deficit as well as the ongoing deficit, a specific total figure for the cumulative DSG deficits up to 2027/28 is not provided in the meeting information.

Councils Involved

Bromley

Meetings Involved

the Executive, Resources and Contracts Policy Development and Scrutiny Committee of Bromley Council on 19 January 2026

People Involved

Councillor Simon Fawthrop Chairman, Executive, Resources & Contracts PDS Committee and Vice-Chairman, Development Control Committee • Conservative • Petts Wood and Knoll

Councillor Shaun Slator Chairman, Plans Sub-Committee No. 1 & Vice-Chairman, Executive, Resources and Contracts PDS Committee and Pensions Committee • Conservative • St Mary Cray

Councillor Jeremy Adams Labour • Clock House

Councillor Mark Brock Chairman, Adult Care & Health PDS Committee and Health Scrutiny Sub-Committee • Conservative • West Wickham

Councillor David Cartwright QFSM Chairman, Public Protection & Enforcement PDS Committee • Conservative • Mottingham

Councillor Robert Evans Vice-Chairman, Audit & Risk Management Committee • Conservative • Farnborough and Crofton

Councillor Adam Jude Grant Chairman, Environment & Community Services PDS Committee • Conservative • Shortlands & Park Langley

Councillor Julie Ireland Liberal Democrats • Bromley Town

Councillor Simon Jeal Labour Group Leader • Labour • Penge and Cator

Councillor Ruth McGregor Deputy Leader, Labour Group • Labour • Crystal Palace & Anerley

Councillor Alexa Michael Chairman, Development Control Committee • Conservative • Hayes and Coney Hall

Councillor Tony Owen Chairman, Renewal, Recreation & Housing PDS Committee and Vice-Chairman, Plans Sub-Committee No. 2 • Conservative • Petts Wood and Knoll

Councillor Mark Smith Chislehurst Matters Group Leader • Chislehurst Matters • Chislehurst

Councillor Melanie Stevens Biggin Hill Independent • Biggin Hill

1 x Councillor Vacancy

Councillor Yvonne Bear Portfolio Holder for Renewal, Recreation & Housing • Conservative • St Mary Cray

Councillor Colin Smith Leader of the Council • Conservative • Bickley & Sundridge

Councillor Kate Lymer Deputy Leader and Portfolio Holder for Children, Education and Families • Conservative • Bickley & Sundridge

Topics

Bromley Council Local Government Finance Settlement for 2026/27 Fair Funding 2.0 review funding shortfall Dedicated Schools Grant (DSG) deficits capital programme transformation programme