Issue

Inflation

17 stories · discussed at 1 council meeting · 12 councils

Councils are currently grappling with inflation's impact on budget gaps, the viability of housing projects, and the rising costs of services and pension fund performance.

Barnet Council is currently facing challenges with housing development projects, as inflation, rising interest rates, and reduced buyer demand are making some schemes unviable, as heard by the Finance and Growth Overview and Scrutiny Sub-Committee in September 2026. Kensington and Chelsea Council also projects a £127.2 million budget gap by 2030/31, partly driven by higher inflation assumptions, according to its Medium-Term Financial Strategy presented in July 2026.

Inflation is also affecting service costs and funding decisions. Enfield Council's Cabinet approved a 4.8% rent increase for council tenants for 2026/27, attributing it to rising inflation in March 2026. In January 2026, Croydon's General Purposes Committee recommended annual inflationary increases to councillors' expenses, reflecting a 4.1% Consumer Price Index rise, for Full Council consideration. Barking and Dagenham Council's Cabinet approved a draft budget strategy in December 2025, including a proposed 4.99% council tax increase, and plans to consult residents on this.

Pension funds are also navigating inflationary pressures. Brent Pension Fund identified inflation as a significant risk with high likelihood and impact in March 2026, citing the geopolitical situation as a key driver. Kingston upon Thames Pension Fund's investment returns lagged benchmarks over three and five-year periods, despite a strong quarterly performance in the quarter ending June 2026.

Key facts

  1. Barnet Council's Finance and Growth Overview and Scrutiny Sub-Committee heard in September 2026 that inflation is making some housing schemes unviable. Source
  2. Kensington and Chelsea Council faces a projected budget gap of £127.2 million by 2030/31, partly due to higher inflation assumptions. Source
  3. Enfield Council's Cabinet approved a 4.8% rent increase for council tenants for 2026/27, attributed to rising inflation. Source
  4. Croydon's General Purposes Committee recommended annual inflationary increases to councillors' expenses, reflecting a 4.1% CPI rise, in January 2026. Source 1 Source 2
  5. Barking and Dagenham Council's Cabinet approved a draft budget strategy in December 2025, including a proposed 4.99% council tax increase, partly due to a £7.4 million inflation pressure. 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 30 September 2026. Spotted a mistake? Email community@opencouncil.network.

Stories, page 2

  1. 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
  2. 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
  3. 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
  4. 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
  5. 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
  6. 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
  7. Enfield Pension Fund Considers Impact of Tariffs on Investments Enfield's Pension Policy & Investment Committee recently convened to assess the potential ramifications of newly imposed tariffs on the Enfield Pension Fund's investment... Enfield 3 August 2025
  8. Bromley Schools Face £7.3M Overspend, SEN Costs a Key Driver Bromley schools are facing a significant financial challenge, with a projected £7.3 million overspend, primarily driven by the rising costs of special educational needs (SEN).... Bromley 17 July 2025