General Fund
Councils are currently addressing projected General Fund overspends, primarily driven by rising service costs, while one council reported an underspend.
Lewisham Council is facing a projected £6.5 million overspend on its General Fund for the 2026/27 financial year, an increase of £3.4 million since May, attributed to rising parking contract and school transport costs, a report to the Public Accounts Select Committee said in September 2026. Lambeth Council's Finance and Budget Scrutiny Committee also reviewed a projected £9.3 million General Fund overspend in September 2026.
In contrast, Islington Council's Executive approved an £8.5 million General Fund underspend for the 2025/2026 financial year in June 2026, primarily due to reduced interest on borrowings and increased interest on investments. The council was also on track to underspend its 2025/26 general fund budget by an anticipated £5 million, according to a report in February 2026.
The General Fund is the main revenue account used by local authorities for day-to-day spending on services. Westminster Council acknowledged a £13.6 million General Fund overspend for the 2024/25 financial year in July 2025, which was covered by reserves and attributed to rising temporary accommodation costs.
Key facts
- Lewisham Council faces a projected £6.5 million General Fund overspend for the 2026/27 financial year. Source
- Islington Council approved an £8.5 million General Fund underspend for the 2025/2026 financial year in June 2026. Source
- Islington Council anticipated a £5 million underspend for its 2025/26 general fund budget in February 2026. Source
- Westminster Council acknowledged a £13.6 million General Fund overspend for the 2024/25 financial year in July 2025. 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.