Temporary accommodation costs
Councils are grappling with significant budget overspends and gaps, largely driven by surging temporary accommodation costs.
In July 2026, Tower Hamlets Council projected an £18.6 million General Fund overspend for 2025/26, partly due to temporary accommodation costs. Merton Council also highlighted significant financial pressures in July 2026, noting that temporary accommodation costs had surged sharply, despite reporting a £0.5 million revenue underspend for the 2025/26 financial year.
Earlier, in January 2026, Newham Council's Cabinet approved a draft budget proposing a 9.99% council tax increase for 2025-26, citing rising temporary accommodation costs and seeking exceptional financial support. Redbridge Council's Overview and Scrutiny Committee noted a £26.8 million General Fund overspend for 2025/26 in June 2026, reflecting the ongoing challenges local authorities face with these expenses.
Key facts
- Tower Hamlets Council projects an £18.6 million General Fund overspend for 2025/26, driven partly by temporary accommodation costs. Source
- Merton Council reported that temporary accommodation costs surged sharply in the 2025/26 financial year. Source
- Merton Council faces a projected budget gap of £9.694 million by 2027/28. Source
- Newham Council's Cabinet approved a draft budget proposing a 9.99% council tax increase for 2025-26. 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.