Law or policy

Medium Term Financial Strategy (MTFS)

17 stories · discussed at 9 council meetings · 17 councils

Councils are currently grappling with significant budget gaps for 2026/27 and beyond, driven by rising service demand and inflation, leading to discussions on savings and council tax increases.

Sutton Council faces a £36.5 million budget gap over three years from October 2026, necessitating a transformation programme due to rising demand in social care, housing, and SEND, according to a report to the Strategy and Resources Committee. In July 2026, Lambeth Council's Cabinet discussed a projected overspend of nearly £11 million for the current financial year and a cumulative budget gap exceeding £93 million over three years, with adult social care demand identified as a primary driver.

To address financial pressures, Redbridge Council's Cabinet approved £7.253 million in new savings for the 2026/27 financial year in January 2026, as part of its Medium Term Financial Strategy (MTFS) aiming for £42.674 million in total savings by 2030/31. In December 2025, Barnet Council's Overview and Scrutiny Committee discussed a proposed 2.98% general council tax increase for 2026/27, while Bexley Council's Public Cabinet considered a 4.99% increase from 2026/27.

External auditors Ernst & Young identified Tower Hamlets Council's financial sustainability as a new risk in September 2026, noting that four statutory recommendations and six significant weaknesses from previous years remain outstanding. The Medium Term Financial Strategy (MTFS) is a financial planning document outlining a council's budget and financial outlook over a medium-term period. No upcoming meetings are listed where this topic is scheduled for discussion.

Key facts

  1. Sutton Council faces a £36.5 million budget gap over the next three years, as reported in October 2026. Source
  2. Tower Hamlets Council's financial sustainability was identified as a new risk by external auditors EY in September 2026. Source
  3. Lambeth Council's Cabinet discussed a cumulative budget gap exceeding £93 million across the next three years in July 2026. Source 1 Source 2
  4. Redbridge Council's Cabinet approved £7.253 million in new savings for the 2026/27 financial year in January 2026. Source
  5. Bromley Council's transformation programme achieved approximately £50 million in savings, as revealed in January 2026. Source
About this summary

This summary was written automatically from our published stories and the council meeting records they draw on. It describes what councils have discussed and decided; it does not take a view on any decision. Each key fact links to the story it comes from. Updated 7 October 2026. Spotted a mistake? Email community@opencouncil.network.

Stories, page 2

  1. Camden Extends Leisure Contract for Recovery Post-Pandemic Camden Council has extended its Leisure Centre Management Contract with Greenwich Leisure Limited (GLL) for five years, aiming to bolster financial recovery following the... Camden 14 December 2025
  2. Barnet Council considers 2.98% general council tax increase Barnet Council is considering a 2.98% increase in general council tax for the 2026/27 financial year. The proposal was discussed at a meeting of the Overview and Scrutiny... Barnet 13 December 2025
  3. Bexley Council Considers 4.99% Council Tax Hike From 2026/27 to Address Budget Gaps Bexley Council is considering a 4.99% council tax increase from 2026/27 onwards as part of its efforts to balance the budget amid increasing financial pressures. The council... Bexley 1 December 2025
  4. Bexley Opens First Family Hub in Erith Bexley Council has opened its first Family Hub in Erith, located on West Street. The hub is part of the council's broader Future Bexley: Transforming Our Borough Together... Bexley 1 December 2025
  5. Croydon Council to Increase Council Tax by 4.99% Amid Financial Challenges Croydon residents will see a 4.99% increase in their council tax bills next year, as the council grapples with ongoing financial challenges stemming from a £1.4 billion debt... Croydon 22 November 2025
  6. K&C Leadership Team Discusses Budget Reduction Proposals for 2026-27 Kensington and Chelsea's Leadership Team convened on 12 November 2025, to discuss draft proposals for budget reductions as part of the Medium Term Financial Strategy (MTFS) for... Kensington and Chelsea 16 November 2025
  7. Merton Council Faces £5.4M Budget Gap for 2026/27 Due to Inflation and Service Pressures Merton Council is facing a significant budget challenge, with a projected £5.4 million gap for the 2026/27 financial year. The cabinet addressed this issue at a meeting on 20... Merton 24 October 2025
  8. Waltham Forest faces £31.4M budget overspend Waltham Forest is grappling with a significant budget overspend of £31.4 million, according to a recent report presented to the Budget Scrutiny Committee. Like many other local... Waltham Forest 8 September 2025