Reserves
Councils are currently addressing significant overspends and budget gaps, with some utilising financial reserves to manage pressures from cyber attacks, service demands, and borrowing.
Kensington and Chelsea Council is facing a £4.5 million overspend for the first quarter of the financial year, with a cyber attack in November 2025 causing £2.75 million in direct costs, as heard by its Leadership Team in September 2026. Lambeth Council's Finance and Budget Scrutiny Committee also reviewed a projected £9.3 million General Fund overspend in September 2026. Brent's Resources and Public Realm Scrutiny Committee discussed significant overspends in temporary accommodation in July 2026.
Westminster City Council faces a projected £161 million budget deficit by 2030, with an £8.2 million overspend for 2025/26 funded from its General Fund balance, as discussed by its Cabinet in July 2026. Bromley Council projects a £10.7 million overspend for 2025/26 due to cost pressures, reported to its Executive in June 2026. Kingston Council used £154 million of its cash reserves in 2025/26 to reduce borrowing, as reviewed by its Audit, Governance and Standards Committee in June 2026.
Tower Hamlets Council is facing a disclaimed audit opinion that external auditors EY project could persist until the 2029-30 financial year, according to information shared at a recent Audit Committee meeting in July 2026. Financial reserves are funds set aside by a local authority for future expenditure or to cover unexpected costs.
Key facts
- Kensington and Chelsea Council is facing a £4.5 million overspend for the first quarter of the financial year. Source
- A cyber attack in November 2025 caused £2.75 million in direct costs for Kensington and Chelsea Council. Source
- Westminster City Council faces a projected budget deficit of £161 million by 2030. Source
- Kingston Council used £154 million of its cash reserves in 2025/26 to reduce borrowing. 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.