Bromley Council is facing a capital spending shortfall of £7.8 million for the 2025/2026 financial year, a figure primarily attributed to project slippage rather than a permanent loss of funding. The planned expenditure has been re-phased into the 2026/2027 financial year.

The figure was revealed in the Capital Outturn Report 2025/2026, presented to the Executive committee on Wednesday, June 24, 2026. The report indicated that capital expenditure for the year was £93.5 million against an approved budget of £101.3 million, resulting in the net variation. The full report can be found in the Public reports pack Wednesday 24-Jun-2026 19.00 Executive.

The £7.8 million shortfall was caused by delays across several council portfolios:

  • Children, Education and Families: Primarily due to delays in the Basic Need programme (£2.3m) and a delay at the Mental Health AP Project where works were postponed due to the discovery of unidentified structures.
  • Environment and Community Services: Delays in the Street Lighting scheme (£0.6m), Depot Improvement Works (£1.8m), and Local Highways Maintenance – DFT Grant (£0.2m). The report noted poor contractor performance and a subcontractor pulling out as factors impacting spend in this area.
  • Resources, Commissioning and Contracts Management: Primarily due to the Churchill Court Phase 4 (HWBC) scheme (£0.4m), partially offset by overspends on other schemes.
  • Renewal, Recreation and Housing: Delays in Bromley Homes for Bromley Residents Acquisition (£1.4m), Bromley North Housing (£0.8m), Manorfields (£0.7m), and OPR Central Library (£0.6m). These were partly offset by accelerated works in Crystal Palace Park - Regeneration (£0.9m). Delays in the conveyancing process, long lead-ins on mechanical plant, extended labour on site, and late variations from the Housing team contributed to these postponements. The central library works were also delayed by 6-8 weeks due to structural and drainage issues.

The capital expenditure for 2025/2026 was £93.5 million, with the following breakdown by portfolio:

  • Children, Education and Families: Approved budget £10.1m, Final outturn £7.5m, Variance Cr £2.6m.
  • Environment and Community Services: Approved budget £12.1m, Final outturn £9.4m, Variance Cr £2.7m.
  • Resources, Commissioning & Contracts Management: Approved budget £8.8m, Final outturn £8.6m, Variance Cr £0.2m.
  • Renewal, Recreation and Housing: Approved budget £70.3m, Final outturn £68.0m, Variance Cr £2.3m.
  • Adult Care and Health: Approved budget £0.0m, Final outturn £0.0m, Variance £0.0m.

The Executive noted the report and approved recommendations related to the capital outturn. The report also detailed the financing of the capital programme, including the use of capital receipts, revenue contributions, government grants, and internal borrowing. The council is currently using internal borrowing to fund schemes while it has sufficient cash, anticipating that interest rates may fall. However, advice suggests long-term borrowing rates might not significantly reduce until around September 2026, potentially settling at about 5.3%. Specific terms and interest rates for the current internal borrowing were not detailed.

A speaker addresses an audience in a theater, with text overlay stating
A speaker addresses an audience in a theater, with text overlay stating \"A fantastic place to live and work, where everyone can lead healthy, safe and independent lives.\"