Waltham Forest Council has reported a significant slippage of £28.7 million in its capital budget for the 2025/26 financial year, representing 17% of the overall capital budget. This figure was detailed in the council's Revenue and Capital Outturn report for 2025/26, presented to the Cabinet on Tuesday, July 14, 2026. The report indicated that actual expenditure on the capital programme amounted to £143.2 million against an approved budget of £171.9 million.
The substantial slippage was primarily attributed to delays in several key areas:
Housing General Fund: £11.113 million was moved to the following financial year. This slippage was largely driven by an overspend of £12.871 million on the Net Cost of Temporary Accommodation (TA). While this was partially offset by underspends elsewhere, the report notes that TA numbers have stabilised through interventions such as changes to the allocations policy, the acquisition of units for move-on at Fellowship Square, rationalisation of high-cost hotels, and a reduction in high-cost placements. The TA to Settled Homes Strategy is estimated to have reduced TA costs by approximately £0.761 million by moving 130 households out of temporary accommodation and avoided TA costs of £0.989 million by placing 171 families at risk of homelessness in private tenancies. An unbudgeted £0.630 million in rental income for TA properties was also included due to an accounting adjustment for a 53rd week of rent. The report does not explicitly detail implications for affordable housing targets or existing housing stock improvements beyond these measures.
A line graph illustrating potential savings over 24 months, showing cumulative costs of TA, potential TA costs, and cumulative cost of incentives, with actuals and forecasts. Housing Delivery and Assets (HRA): £7.363 million was delayed. Reasons include programme delays on Building Safety works due to resident access issues, scope changes, adverse weather, contractor coordination, and fire engineer input. The MHCLG Local Authority Housing Fund (LAHF) acquisition programme also saw slippage due to over-optimistic estimates and works needing completion by July 2026. Delays on the Housing Main Programme occurred as a forecast contractor claim did not materialise by year-end. Slippage also affected the acquisition of council homes at Osier Way and Fellowship Square due to outstanding costs and retention monies, respectively. The Housing Digital Programme is now expected in 2026/27, and housing estate management projects also experienced delays.
Regeneration, Planning and Strategic Property: £3.374 million was delayed. This includes delays in finalising project accounts for the Walthamstow Central Station Box Safeguarding project and public realm schemes for the Local Regeneration Fund due to sequencing of works. Leyton Underground Station improvements were delayed by TfL's delivery programme, and the UK Shared Prosperity Fund (UKSPF) programme has been re-profiled to September 2026. Local area regeneration projects also faced delays due to project management capacity.
Capital Strategy, Delivery and Estates: £4.029 million was delayed. Specific projects include the Soho Theatre Walthamstow, Chingford Mount Crematorium, and St James Health Hub fit out, all experiencing delays due to final cost finalisation, site works not aligning with cashflow forecasts, and prolonged lease negotiations, respectively. Facilities Management projects were impacted by health and safety works and energy efficiency upgrades. The Coronation Square programme's phase 2 is in abeyance, and the Asset Transformation programme faced delays in design and environmental surveys. The Mortuary project saw an underspend as it is complete, while the Families and Homes Hub experienced slippage due to Building Safety Regulations requirements. There was accelerated spend on Fellowship Square, Lea Bridge Station Sites, and Rolls Park Clubhouse. An overspend occurred on the Leytonstone Leisure Centre roof replacement due to solar panel installation costs, and historic expenditure was recognised for the SAP to Oracle migration. Minor projects within Capital Delivery and Energy Management also saw overspends.
The council's overall capital programme was financed through a variety of sources, including grants, developer contributions, capital receipts, and borrowing. In 2025/26, the HRA realised £26.681 million in capital receipts, comprising £15.450 million from Right to Buy (RTB) sales and £11.231 million from other HRA disposals. Of this, £19.085 million was used to finance HRA capital expenditure, and £0.115 million supported General Fund Housing Projects. The remaining balance of usable capital receipts for the HRA at the end of 2025/26 was £7.481 million.
The report states that The total use of borrowing increases the Council's Minimum Revenue Provision (MRP) commitment in future years.
This indicates that the capital programme, which includes the slippage, is financed through various sources, including borrowing, and this will have implications for future MRP commitments. The full details of the report can be found in the Public reports pack for the Cabinet meeting.
