Agenda item

That Cabinet considered the report, and made the following recommendations to Full Council for approval, for the reasons set out in this report and appendices:

1.    To note the three-year settlement numbers for the General Fund, covering 2026/27, 2027/28, and 2028/29

2.    To approve a balanced budget for 2026/27 as set out in the report, including the underlying principles and assumptions.

3.    To increase the Hammersmith & Fulham element of Council Tax by 2.99% as modelled by the Government in its spending power calculations for local government.

4.    To apply the Adult Social Care precept levy of 2% as modelled bythe Government in its spending power calculations for local government.

5.    To approve fees and charges, as set out in Appendix E, including freezing charges in adult social care and children’s services.

6.    To approve the Medium-Term Financial Strategy and to note the impact of funding reform from 2026/27 onwards, and budget projections to 2029/30 made by the Executive Director of Finance and Corporate Services in consultation with the Strategic Leadership Team. (Appendix B).

7.    To note the statement of the Executive Director of Finance and Corporate Services, under Section 25 of the Local Government Act 2003, regarding the adequacy of reserves and robustness of estimates.

8.    To approve the reserves strategy and forecast as set out in Appendix G.

9.    To require all Directors to report on their projected financial position compared to their revenue estimates in accordance with the Corporate Revenue Monitoring Report timetable.

10.To authorise Directors to implement their service spending plans for 2026/27 in accordance with the recommendations within this report, the council’s Standing Orders, Financial Regulations, relevant Schemes of Delegation and undertake any further consultation required regarding the Equalities Impact Assessment.

11.Set the council’s element of Council Tax for 2026/27 for each category of dwelling, as outlined in the table below and in full in Appendix A and calculated in accordance with Sections 31A to 49B of the Localism Act 2011.

12.   To note, based on the Mayor of London’s draft consolidated budget, the element of Council Tax to be charged by the Greater London Authority in accordance with Section 40 of the Local Government Finance Act 1992 for each of the categories of dwellings as shown in the table below.

13.          That the overall Council Tax to be set at £1,519.51 per Band D property as follows:

14.          To authorise the Executive Director of Finance and Corporate Services to collect and recover National Non-Domestic Rate and Council Tax in accordance with the Local Government Finance Act 1988 (as amended), the Local Government Finance Act 1992 and the Council’s Scheme of Delegation.

15.          To note the Council’s estimated position on the Collection Fund (as set out in paragraph 60).

16.          To note the performance on the management of arrears across the Council on all debts due (as set out from paragraph 71).

Councillor Rowan Ree (Cabinet Member for Finance and Reform) introduced the report that set out the Council’s Revenue Budget for 2026/27 and provided an update on the Council’s Medium Term Financial Strategy including the impact of the Local Government Finance Settlement and the adequacy of the balances and reserves to ensure that the Council can maintain long term sustainability and maintain the strong financial governance of its resources.

Councillor Ree said the budget provided financial resilience and funded the services residents rely on, including services that were unique to Hammersmith and Fulham, such as universal free breakfasts to our primary schools (later taken up by national Government), the local Law Enforcement Team, and free home care. He noted that the budget also funded the borough’s expanded Council Tax support scheme, including the newly added 25% cut for military veterans.

Councillor Jose Afonso (Leader of the Opposition) noted the impact of the Fair Funding Review 2.0 and Business Rates Reset from April 2026 which meant lower funding levels from central Government and asked what the Government’s problem was with Hammersmith and Fulham and its residents. The Leader said the Council had one of the best Council Tax cutting records in the Country and, unlike some neighbouring boroughs, did so while increasing services for residents rather than reducing them. He said the borough had only ever received praise from the current Government, particularly in reference to free primary school breakfasts (which had been adopted as national policy) and free home care.

Councillor Afonso noted that the report showed the budget gap in the worst case scenario was £70m and asked how much of that gap was covered by transformation programmes. The Leader said the Administration had saved over £156m from the Council’s budget since getting elected in 2014, a record amount in the borough in real terms. He said the transformation programmes would move at that pace and the figure quoted was not an unusual budget gap, with similar numbers in previous years. He said the Council was continually moving efficiency programmes forward.

Councillor Ree discussed the Council’s transformation programmes, designed to drive spending reductions over the medium-term and make the Council more efficient. The programmes focussed on staffing, maximising income generation, making the most of the Council’s property portfolio, and taking advantage of the latest technological developments and the data the council holds. He noted that a number of initiatives had already had an impact and highlighted the Fraud, Recovery and Error Detection (FRED) programme which used data and AI and had saved over £1m a year.

The report and recommendations were unanimously agreed.

RESOLVED

That Cabinet considered the report, and made the following recommendations to Full Council for approval, for the reasons set out in this report and appendices:

1.    To note the three-year settlement numbers for the General Fund, covering 2026/27, 2027/28, and 2028/29

2.    To approve a balanced budget for 2026/27 as set out in the report, including the underlying principles and assumptions.

3.    To increase the Hammersmith & Fulham element of Council Tax by 2.99% as modelled by the Government in its spending power calculations for local government.

4.    To apply the Adult Social Care precept levy of 2% as modelled bythe Government in its spending power calculations for local government.

5.    To approve fees and charges, as set out in Appendix E, including freezing charges in adult social care and children’s services.

6.    To approve the Medium-Term Financial Strategy and to note the impact of funding reform from 2026/27 onwards, and budget projections to 2029/30 made by the Executive Director of Finance and Corporate Services in consultation with the Strategic Leadership Team. (Appendix B).

7.    To note the statement of the Executive Director of Finance and Corporate Services, under Section 25 of the Local Government Act 2003, regarding the adequacy of reserves and robustness of estimates.

8.    To approve the reserves strategy and forecast as set out in Appendix G.

9.    To require all Directors to report on their projected financial position compared to their revenue estimates in accordance with the Corporate Revenue Monitoring Report timetable.

10.To authorise Directors to implement their service spending plans for 2026/27 in accordance with the recommendations within this report, the council’s Standing Orders, Financial Regulations, relevant Schemes of Delegation and undertake any further consultation required regarding the Equalities Impact Assessment.

11.Set the council’s element of Council Tax for 2026/27 for each category of dwelling, as outlined in the table below and in full in Appendix A and calculated in accordance with Sections 31A to 49B of the Localism Act 2011.

12.   To note, based on the Mayor of London’s draft consolidated budget, the element of Council Tax to be charged by the Greater London Authority in accordance with Section 40 of the Local Government Finance Act 1992 for each of the categories of dwellings as shown in the table below.

13.          That the overall Council Tax to be set at £1,519.51 per Band D property as follows:

14.          To authorise the Executive Director of Finance and Corporate Services to collect and recover National Non-Domestic Rate and Council Tax in accordance with the Local Government Finance Act 1988 (as amended), the Local Government Finance Act 1992 and the Council’s Scheme of Delegation.

15.          To note the Council’s estimated position on the Collection Fund (as set out in paragraph 60).

16.          To note the performance on the management of arrears across the Council on all debts due (as set out from paragraph 71).