rising costs
Councils are currently addressing significant budget overspends and project cost escalations, particularly in children's services and construction.
Islington Council is currently addressing a projected £2.2 million overspend for the financial year, with Children's Services facing a £2.975 million overspend due to increased demand and rising costs from private providers, as reviewed by the Executive committee in September 2026. This follows Bromley Council's forecast in March 2026 of a £16.16 million budget overspend for 2025/26, which is expected to reduce its General Fund balance.
Councils are also managing significant project cost escalations, which are increases in the expense of construction and development. A permanent health hub for Barking Riverside has been delayed due to rising costs, councillors heard in September 2026. In Islington, the budget for a new pavilion at Ray Crescent Park increased to £2.1 million, with councillors questioning the £8,000 per square metre cost in July 2026.
Lewisham Council is seeking a new solution for the Ladywell Playtower restoration after its cost escalated from £4.5 million to £7 million due to factors including global inflation, as discussed at a Mayor and Cabinet meeting in October 2025. This project's challenges highlight the broader issue of rising costs affecting council undertakings.
Key facts
- Islington Council projects a £2.2 million overspend for the financial year, reviewed in September 2026. Source
- Children's Services in Islington forecasts a £2.975 million overspend due to rising costs from private providers. Source
- A permanent health hub for Barking Riverside has been delayed due to rising costs, heard in September 2026. Source
- The budget for Ray Crescent Park pavilion in Islington increased to £2.1 million by July 2026. Source
- Bromley Council forecasted a £16.16 million budget overspend for 2025/26 in March 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 30 September 2026. Spotted a mistake? Email community@opencouncil.network.