medium-term financial strategy (MTFS)
Councils are grappling with significant budget gaps for 2026-27 and beyond, driven by social care and inflation, leading to proposed savings and financial strategy reviews.
Lambeth Council is forecasting a total overspend of nearly £11 million for 2026-27 and a cumulative budget gap of over £93 million across the next three years, with children's services facing a £2.018 million overspend, as reported in July 2026. Bexley Council's updated Medium-Term Financial Strategy (MTFS) projects a budget gap of £21.8 million by 2030, attributed to structural pressures in social care and special educational needs transport, and inflationary pay pressures, according to a July 2026 story.
Hammersmith and Fulham Council is planning £17.9 million in savings for the 2026/27 financial year as part of its MTFS, due to demand-led increases in Adult Social Care and Children's Services, as discussed in January 2026. Kensington and Chelsea Council's Leadership Team considered seeking permission in October 2025 to consult on potential cuts to its Council Tax Reduction Scheme for working residents from April 2026, in response to intensifying financial pressures.
Waltham Forest Council's Budget, Performance and Coordinating Committee was scheduled to review the council's financial performance and future strategy in September 2026. Richmond upon Thames Council's Finance, Policy and Resources Committee discussed its Transformation Programme to address significant financial challenges in September 2026. No upcoming meetings with this topic on the agenda have been supplied.
Key facts
- Lambeth Council forecasts a total overspend of nearly £11 million for 2026-27 and a cumulative budget gap of over £93 million across the next three years. Source
- Bexley Council's updated MTFS projects a budget gap of £21.8 million by 2030, widening from £8.19 million in 2027-28. Source
- Hammersmith and Fulham Council is planning £17.9 million in savings for the 2026/27 financial year. Source
- Kensington and Chelsea Council's Leadership Team considered consulting on potential cuts to its Council Tax Reduction Scheme from April 2026. Source
- Kensington and Chelsea Council faces a £118 million budget shortfall over four years due to proposed changes in local authority funding. 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.