Contract inflation
Bexley Council is addressing budget gaps and a projected overspend, partly due to contract inflation, by considering a council tax increase.
Bexley Council is addressing financial challenges, including contract inflation, as it faced a projected budget overspend of £1.76 million for the 2025/26 financial year, according to a report to the Public Cabinet in February 2026. This overspend, representing 0.7% of the net revenue budget, was primarily within Adult Social Care and Public Health, which forecast a £3.621 million deficit. The Public Cabinet also discussed the 2025-26 financial year outturn in July 2026.
To address budget gaps partly caused by contract inflation, Bexley Council is considering a 4.99% council tax increase from 2026/27. This proposal was discussed at the Public Cabinet meeting in November 2025 as part of the Medium Term Financial Strategy for 2026/27 to 2029/30. The council faces challenges including contract inflation, staff recruitment difficulties, and increasing demand for services.
Key facts
- Bexley Council faced a projected budget overspend of £1.76 million for the 2025/26 financial year. Source
- The 2025/26 overspend represented 0.7% of Bexley Council's net revenue budget. Source
- Bexley Council is considering a 4.99% council tax increase from 2026/27. Source
- Contract inflation is identified as a challenge contributing to Bexley Council's budget gaps. Source
- The proposed council tax increase was discussed at the Public Cabinet meeting in November 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 1 October 2026. Spotted a mistake? Email community@opencouncil.network.