Agenda item

RESOLVED

1. That Cabinet noted the General Fund financial forecast variance at Month 6 (Table 1 and Appendix 1).

2. That Cabinet noted progress on delivering the 2025/26 agreed budget savings (Appendix 3).

3. That Cabinet noted the HRA forecast (paragraph section 24 to 26 and Appendix 2).

4. That Cabinet noted and approved the budget movements (Appendix 4).

Councillor Rowan Ree (Cabinet Member for Finance and Reform) introduced the report which presented the financial performance review at Month 6 (September 2025), following the previous update provided at Month 2 (May 2025). The outcomes of the review continued to reflect the challenging macro-economic conditions and were based on a pragmatic assessment of the Council’s financial performance. The estimated financial position incorporates known and emerging budget pressures and potential risks. Councillor Ree noted that the Housing Revenue Account (HRA) was in a better position than previous years, with a balanced budget set for 2025/26 (without the use of balances). He noted that a prudent approach had been adopted in the forecasts for 2025/26, with an in-year pressure projected due to historical disrepair claims and works. He said a number of mitigations had been implemented to manage the projected pressure.

Councillor Adronie Alford asked for an explanation of why garden waste income was lower than expected, suggesting it could be due to the high price. Councillor Stephen Cowan (Leader of the Council) recounted the history of garden waste in the borough, noting previous approaches had been unsuccessful and a previous administration had withdrawn the service entirely. He explained that the new service was aligned with the Council’s goal to be the most environmentally positive local authority in the Country - and it aimed to compete with more expensive private sector offerings. He said the Council was planning a marketing push to increase take-up.

Councillor Alford asked why reported parking income was lower than expected. The Leader said the Council had put a lot of effort into deterring traffic from using the borough as a cut-through to improve air quality and protect residents’ health. He added that the success of active-travel schemes with more people walking and cycling, and fewer young people driving, had also contributed.

Councillor Alford raised concerns that traffic schemes were also deterring people from shopping and impacting the viability of some local shops. The Leader said the Council was not trying to stop people who need cars from driving, but rather encourage people who were able to walk and cycle. Regarding shop closures, he noted that while the high-street had faced challenges across the Country, the areas of the borough with the most serious restrictions such as the South Fulham Clean Air Neighbourhood had seen an increase in shops. He also highlighted new cafes and shops on Wandsworth Bridge Road since it had become more pedestrian friendly, and the success of the traffic-free North End Road market.

Councillor Alford noted the continued strain of temporary-accommodation on the HRA budget and asked if the Council had a plan to address it. The Leader agreed that it was an important problem for all local authorities. He paid tribute to Councillors Rowan Ree and Frances Umeh who had seen the problem early and had taken serious measures to address it, including 17,000 new properties being built in the borough with over 35% of them being affordable homes. He said the scale of demand was a genuine problem and the Council was speaking with the Government about this issue. Councillor Ree added that the purpose of the newly created Housing Company, agreed at the previous Cabinet meeting, was partly to address this issue and provide additional temporary accommodation.

The report and recommendations were unanimously approved.

RESOLVED

1. That Cabinet noted the General Fund financial forecast variance at Month 6 (Table 1 and Appendix 1).

2. That Cabinet noted progress on delivering the 2025/26 agreed budget savings (Appendix 3).

3. That Cabinet noted the HRA forecast (paragraph section 24 to 26 and Appendix 2).

4. That Cabinet noted and approved the budget movements (Appendix 4).