Medium Term Financial Strategy (MTFS)
Councils are grappling with significant financial challenges, with external auditors highlighting risks and budget gaps, while seeking savings and considering council tax increases.
External auditors Ernst & Young reported in September 2026 that Tower Hamlets Council's financial sustainability remains a significant risk, with four statutory recommendations and six significant weaknesses outstanding. Lambeth Council's Cabinet discussed in July 2026 that 21 savings schemes are at risk, potentially creating an £18.157 million gap, with a projected overspend of nearly £11 million for the current financial year.
To address financial pressures, Redbridge Council's Cabinet approved £7.253 million in new savings for the 2026/27 financial year in January 2026. Bromley Council's transformation programme achieved approximately £50 million in savings, as reported in January 2026. Barnet, Bexley, and Croydon Councils discussed proposed council tax increases in late 2025 to help balance budgets amid rising costs.
Westminster's Value for Money and Innovation Policy and Scrutiny Committee is scheduled to review its work programme and the "Fit for the Future" programme on September 30, 2026. Sutton's Strategy and Resources Committee will meet on October 5, 2026. The Medium Term Financial Strategy (MTFS) is a financial plan outlining a council's income and expenditure over several years.
Key facts
- Tower Hamlets Council's external auditors identified financial sustainability as a significant risk in September 2026. Source
- Lambeth Council's Cabinet discussed 21 savings schemes at risk, potentially creating an £18.157 million gap, in July 2026. Source
- Lambeth Council projected a cumulative budget gap exceeding £93 million across three years, discussed in July 2026. Source
- Redbridge Council's Cabinet approved £7.253 million in new savings for the 2026/27 financial year in January 2026. Source
- Bromley Council's transformation programme achieved approximately £50 million in savings, reported in January 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.