Bromley Council is facing a projected £4.5 million overspend for the 2026-2027 financial year, according to budget monitoring data presented to the Executive.
The projected net overspend on services stands at £4,556,000 as of June 2026. This is forecast to lead to a reduction in the General Fund balance of £3,082,000. The level of general reserves is currently projected to reduce by £3,082,000 to £16,918,000 by 31st March 2027.
The report highlights significant pressures within Adult Social Care, particularly in care placements and staffing, and in Children's Social Care, primarily due to placement costs and staffing. An overspend in Income from Investment Properties, attributed to lease expiries and vacant accommodation, also contributes to the projected deficit.
Conversely, interest on balances is projected to exceed the budget by £2,000,000 due to higher-than-assumed average cash balances. The Dedicated Schools Grant (DSG) faces a projected in-year overspend of £17,584,000, which will be added to the existing carried-forward deficit, resulting in an estimated DSG reserve deficit of £57,563,000.
Officers are currently working on a recovery plan with the Department for Education (DfE) for the DSG deficit, as part of a national initiative. The government has indicated potential funding of up to 90% for the cumulative deficit up to 2025/26, subject to certain conditions. The precise implications for local schools are not yet detailed, beyond the fact that the deficit will be added to the existing carried-forward deficit.
To mitigate these financial pressures, the Executive has agreed to the release of funding from the 2026/27 central contingency. The council is also undertaking a significant transformation programme, Transforming Bromley 2024-29
. This programme is the council's principal mechanism for delivering financial sustainability, service improvement and organisational modernisation
and carries £32.173m of savings across seven portfolios. It is currently on track to deliver £32.067m, or 99.7% of its target, contributing to mitigating the projected overspend by delivering these agreed savings.
Within the 'Transforming Bromley 2024-29' programme, 'Amber savings' totalling £6.582m require active management. These are described as savings that retain a realistic path to recovery through active management
and are concentrated in five proposals within adult social care, children's social care, and housing. These are demand-management or market-facing initiatives and are correspondingly slower to realise.
Specific active management strategies for these Amber savings include:
- Right Sizing Domiciliary Care Programme: Reviews of one-to-one and double-handed care.
- Reduction in children looked after: Efforts to reduce independent fostering agency use, with the Solace Rise open and a block contract running with no voids.
- 0-25 Transformation: Joint adults and children's oversight of remaining transitions.
- Fifteen-year temporary accommodation lease arrangement: Continued market testing of leasing and management options.
- Merger of two specialist children in care social work teams: Expected in-year as part of the development of a wider adolescent offer.
Further details on the budget monitoring data can be found in the Public reports pack for the Executive meeting on Wednesday, 16 September 2026.
