Law or policy

Medium Term Financial Strategy (MTFS)

17 stories · discussed at 9 council meetings · 17 councils

Councils are currently grappling with significant budget gaps for 2026/27 and beyond, driven by rising service demand and inflation, leading to discussions on savings and council tax increases.

Sutton Council faces a £36.5 million budget gap over three years from October 2026, necessitating a transformation programme due to rising demand in social care, housing, and SEND, according to a report to the Strategy and Resources Committee. In July 2026, Lambeth Council's Cabinet discussed a projected overspend of nearly £11 million for the current financial year and a cumulative budget gap exceeding £93 million over three years, with adult social care demand identified as a primary driver.

To address financial pressures, Redbridge Council's Cabinet approved £7.253 million in new savings for the 2026/27 financial year in January 2026, as part of its Medium Term Financial Strategy (MTFS) aiming for £42.674 million in total savings by 2030/31. In December 2025, Barnet Council's Overview and Scrutiny Committee discussed a proposed 2.98% general council tax increase for 2026/27, while Bexley Council's Public Cabinet considered a 4.99% increase from 2026/27.

External auditors Ernst & Young identified Tower Hamlets Council's financial sustainability as a new risk in September 2026, noting that four statutory recommendations and six significant weaknesses from previous years remain outstanding. The Medium Term Financial Strategy (MTFS) is a financial planning document outlining a council's budget and financial outlook over a medium-term period. No upcoming meetings are listed where this topic is scheduled for discussion.

Key facts

  1. Sutton Council faces a £36.5 million budget gap over the next three years, as reported in October 2026. Source
  2. Tower Hamlets Council's financial sustainability was identified as a new risk by external auditors EY in September 2026. Source
  3. Lambeth Council's Cabinet discussed a cumulative budget gap exceeding £93 million across the next three years in July 2026. Source 1 Source 2
  4. Redbridge Council's Cabinet approved £7.253 million in new savings for the 2026/27 financial year in January 2026. Source
  5. Bromley Council's transformation programme achieved approximately £50 million in savings, as revealed 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 7 October 2026. Spotted a mistake? Email community@opencouncil.network.

Stories, page 3

  1. Barking & Dagenham faces £12.6m budget gap in 2026/27, rising to £16.8m by 2028/29 Barking & Dagenham Council is facing a projected budget shortfall of £12.6 million for the 2026/27 financial year, according to an updated Medium Term Financial Strategy (MTFS)... Barking and Dagenham 20 August 2025