Inflation
Councils are grappling with significant budget gaps and pension fund challenges due to ongoing inflation.
Richmond Council approved its Medium-Term Financial Strategy in October 2026, outlining a projected £70 million budget gap by 2030/31, driven by inflation and other factors (story 10417). Kensington and Chelsea Council faces a £127.2 million budget gap by 2030/31, with higher inflation assumptions contributing to the deficit, as reported in July 2026 (story 8745). Barnet Council is also facing challenges for housing projects due to inflation and rising interest rates, heard by its Finance and Growth Overview and Scrutiny Sub-Committee in September 2026 (story 9358).
Kingston Pension Fund's funding level dipped to 128% by June 2026, attributed to higher-than-anticipated inflation impacting liabilities, according to the Head of Pensions Investments and Treasury in October 2026 (story 10618). Brent Pension Fund identified inflation as a high-likelihood and high-impact risk in March 2026, reviewing its investment strategy (story 7032). Enfield Council's Cabinet approved a 4.8% rent increase for council tenants for 2026/27, attributing it to rising inflation affecting all costs in March 2026 (story 6404).
Croydon councillors are set to receive annual inflationary increases to expenses, with a 4.1% rise reflecting the Consumer Price Index, recommended by the General Purposes Committee in January 2026 (story 5573). Islington Council pledged in December 2025 to maintain its Council Tax Support Scheme for 2026/27 despite inflationary pressures (story 5003). Inflation, a general increase in prices and fall in purchasing value of money, continues to impact council finances and service delivery.
Key facts
- Kingston Pension Fund's funding level dipped to 128% by June 2026 due to higher-than-anticipated inflation impacting liabilities. Source
- Richmond Council faces a projected budget gap of nearly £70 million by 2030/31, driven by inflation, as approved in October 2026. Source
- Barnet Council faces challenges for housing projects due to inflation, heard by its Finance and Growth Overview and Scrutiny Sub-Committee in September 2026. Source
- Kensington and Chelsea Council faces a projected budget gap of £127.2 million by 2030/31, with higher inflation assumptions contributing to the deficit. Source
- Enfield Council plans to increase rents for council tenants by 4.8% in 2026/27, attributed to rising inflation. Source
About this summary
This summary was written automatically from our published stories and the council meeting records they draw on, with background from Wikipedia. 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 15 October 2026. Spotted a mistake? Email community@opencouncil.network.