Balanced Budget
Councils are currently addressing significant financial pressures, with Westminster facing a projected £161 million deficit by 2030.
Westminster City Council is currently addressing a projected budget deficit of £161 million by 2030, according to a report in July 2026. The council's Cabinet approved the approach for medium-term financial planning in July 2026, following an £8.2 million overspend in the 2025/26 General Fund revenue, which was funded from the General Fund balance. This overspend was primarily due to pressures in temporary accommodation and children's social care.
Merton Council's Overview and Scrutiny Committee scrutinised budget and savings proposals in March 2026, noting that an additional £1.3 million in savings are under consideration, bringing the total to £8.3 million. However, a further £1.744 million needs to be identified. Lambeth Council's Cabinet approved a 4.99% Council Tax increase for the 2026/27 financial year in February 2026, as part of its Medium-Term Financial Strategy.
A balanced budget is a financial state where total revenues equal or exceed total expenditures. Councils aim for this to ensure financial stability and fund essential services. The current discussions across councils reflect ongoing efforts to manage financial pressures, including government funding reductions and rising service demands, particularly in social care.
Key facts
- Westminster City Council faces a projected budget deficit of £161 million by 2030. Source
- Westminster's Cabinet approved the approach for medium-term financial planning in July 2026. Source
- Westminster had an £8.2 million overspend in the 2025/26 General Fund revenue. Source
- Merton Council is considering an additional £1.3 million in savings. Source
- Lambeth Council approved a 4.99% Council Tax increase for 2026/27 in February 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.