Medium-Term Financial Strategy (MTFS)
Councils are approving Medium-Term Financial Strategies amidst significant budget gaps and pressures from funding cuts and rising demand.
Richmond Council recently approved its Medium-Term Financial Strategy (MTFS), outlining a projected budget gap of nearly £70 million by 2030/31, with Councillor Jim Millard, Lead Member for Finance and Resources, describing it as the most significant financial challenge in its history. The council unanimously passed a motion on 6 October 2026, criticising government funding cuts as a key driver of financial challenges.
Other councils are also grappling with substantial financial pressures, with Lambeth Council forecasting a cumulative budget gap of over £93 million across the next three years, partly due to children's services overspends. Bexley Council's updated MTFS projects a £21.8 million budget gap by 2030, attributed to structural pressures in social care and special educational needs transport. Hammersmith and Fulham Council is planning £17.9 million in savings for the 2026/27 financial year, citing demand-led increases in Adult Social Care and Children's Services.
Kensington and Chelsea Council is considering cuts to its Council Tax Reduction Scheme for working residents, facing a £118 million budget shortfall over four years due to proposed funding reforms. The Human Resources Committee of Tower Hamlets Council is scheduled to discuss the Medium-Term Financial Strategy on 13 October 2026. The MTFS is a financial planning document outlining a council's budget and financial outlook over several years.
Key facts
- Richmond Council approved its Medium-Term Financial Strategy, outlining a projected budget gap of nearly £70 million by 2030/31. Source
- Richmond Council unanimously passed a motion on 6 October 2026, criticising government funding cuts. Source
- Lambeth Council is forecasting a cumulative budget gap of over £93 million across the next three years. Source
- Bexley Council faces a projected budget gap of £21.8 million by 2030, according to its updated MTFS. Source
- Hammersmith and Fulham Council is planning to make savings of £17.9 million for the 2026/27 financial year. 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.