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Inflation

19 stories · discussed at 2 council meetings · 15 councils

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

  1. Kingston Pension Fund's funding level dipped to 128% by June 2026 due to higher-than-anticipated inflation impacting liabilities. Source
  2. Richmond Council faces a projected budget gap of nearly £70 million by 2030/31, driven by inflation, as approved in October 2026. Source
  3. 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
  4. 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
  5. 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.

Stories, page 2

  1. Rent increases planned for council tenants Enfield Council is planning to increase rents for its council tenants by 4.8% in the 2026/27 financial year. The decision, made by the council's Cabinet, aligns with government... Enfield 1 March 2026
  2. Croydon council to review councillors' expenses Croydon councillors are set to have their expenses reviewed, with a proposal to introduce annual inflationary increases to better reflect the rising cost of living. Croydon 16 January 2026
  3. Croydon councillors' allowances to rise with inflation Croydon councillors are set to see their allowances rise in line with inflation, following a recommendation from the General Purposes Committee. Croydon 16 January 2026
  4. Barking and Dagenham Council to Consult on 4.99% Council Tax Increase to Address Budget Gap Barking and Dagenham Council is proposing a 4.99% council tax increase and will consult with residents on the decision. Barking and Dagenham 13 December 2025
  5. Islington to Maintain Council Tax Support Despite Inflation Islington Council has pledged to maintain its Council Tax Support Scheme (CTSS) for the 2026/27 financial year, despite inflationary pressures. The decision, made at a Council... Islington 7 December 2025
  6. Merton Council Faces £4.1M Budget Shortfall Despite Financial Improvement; Housing Crisis, Planning, Adult Learning, and Sustainable Communities Also Addressed Merton Council is grappling with a £4.1 million budget shortfall, despite showing signs of financial improvement, according to a recent cabinet meeting. Merton 28 November 2025
  7. Hounslow Council Approves £690k for Inflation Relief Hounslow Council has approved the allocation of £690,791 from its corporate inflation provision to service budgets for the 2024/25 financial year. This allocation, representing... Hounslow 18 October 2025
  8. Barking & Dagenham faces £12.6m budget gap in 2026/27, rising to £16.8m by 2028/29 Barking & Dagenham Council is facing a projected budget shortfall of £12.6 million for the 2026/27 financial year, according to an updated Medium Term Financial Strategy (MTFS)... Barking and Dagenham 20 August 2025