Merton Council's budget and savings proposals face scrutiny amid financial pressures

Merton Council's budget and business plan, including proposals for further savings, were scrutinised by the Overview and Scrutiny Committee on Wednesday, March 11, 2026. Councillors were informed that an additional £1.3 million in savings are under consideration, which would bring the total to £8.3 million. However, a further £1.744 million needs to be identified before the February Budget Council.

The committee noted the receipt of the provisional local government finance settlement for 2026-2029, which includes changes stemming from the Fair Funding review and business rates reset. Financial pressures, particularly in social care, were highlighted as ongoing concerns affecting councils across London and the nation.

Despite concerns raised about the lack of a balanced budget and sufficient scrutiny time for further savings, the Cabinet Member assured that the upcoming Budget Council would provide a full opportunity for this intense scrutiny. ¹

Regarding Section 117 aftercare, members received reassurance that proposed savings would focus on assessing need rather than removing care. ² This statutory duty under the Mental Health Act is a joint responsibility between the Integrated Care Board (ICB) and the local authority. The proposal aims to work collaboratively with health colleagues to review individuals and ensure they receive appropriate support.