Reserves

Wandsworth Council is proposing a 94% Council Tax increase for 2027/28 to address a budget gap, partly due to a projected £84 million reduction in government funding by 2029/30, as heard by the Finance Overview and Scrutiny Committee in October 2026. Sutton Council faces a £36.5 million budget gap over three years. Kensington and Chelsea Council reported a £4.5 million overspend in the first quarter, partly due to a November 2025 cyber attack costing £2.75 million, discussed by the Leadership Team in September 2026. Lambeth Council's Finance and Budget Scrutiny Committee reviewed a projected £9.3 million General Fund overspend in September 2026.

Westminster City Council faces a £161 million budget deficit by 2030, funding an £8.2 million overspend for 2025/26 from its General Fund balance, as discussed by the Cabinet in July 2026. Bromley Council projected a £10.7 million overspend for 2025/26 due to cost pressures, leading to reserve reductions, according to a June 2026 Executive committee report. Kingston Council used approximately £154 million of its cash reserves to reduce borrowing for 2025/26, as reviewed by the Audit, Governance and Standards Committee in June 2026. Tower Hamlets Council faces a disclaimed audit opinion until 2029-30, as indicated by external auditors EY in July 2026.

Financial reserves are funds set aside by councils for future spending or to cover unexpected costs. Councils are currently assessing their financial strategies and the sustainability of these reserves amidst ongoing funding pressures and rising service demands. No upcoming meetings specifically discussing reserves have been provided.