Agenda item

This report provides an update on the overall preparation and proposals for the 2026/27 revenue budget, risks, financial resilience, and the impact of those proposals.

Corporate Budget

Councillor Rowan Ree (Cabinet Member for Finance and Reform) introduced the item and gave a presentation that detailed the proposals for the 2026/27 budget. He showed slides which highlighted the following:

• Strategic context – including the Chancellor’s Budget Statement and changing demographics within the borough
• The fair funding review was now a three?year settlement and there were expected to be budgetary pressures due to this in 2027/28
• The revenue budget strategy was to ensure a sustainable, legal and balanced budget
• The budget was set to set aside money for pay inflation (2.5%), price inflation (3.2%) and essential pressures
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Departmental Budget

Kellie Gooch, (Head of Finance, Place) gave a presentation on the department’s revenue budget 2026/27. This covered the department’s recent achievements, relevant to this Committee as follows:

• A-rating from the Carbon Disclosure Project for transparent and bold climate action and commitment.
• Highest concentration of electric vehicle charging points in UK and largest concentration of air quality monitors in Europe
• Recognised by UK Divest as amongst the most successful local authority Pension Funds in divesting from fossil fuels
• Promoting active travel - creating a legacy of cycle trained young people, delivering Bikeability for families and green local deliveries through ‘Parcels Not Pollution’ cargo bike scheme
• Launched the H&F Green investment scheme – targeting £5m of funding.

Additionally, the team was focussed on securing external funding, both within the Place Department and across the Council, to maximise Climate Action at the least cost to the Council. Since 2021 the team had successfully brought in approximately £19m of external funding, enabling the delivery of climate projects with a total value of approximately £34m (£15m match funding). The team was also investing £30m+ in green capital projects, transport schemes and emission reduction schemes

The Chair requested further information on how commercial income was recorded within the Council’s budget. Councillor Rowan Ree explained that commercial income was treated as a saving because it represented money the Council did not need to spend. This income was therefore accounted for as a reduction in the amount the Council must find in savings elsewhere in the budget.

The Chair said that she was pleased to hear that funding was being used for tree planting and paving, as well as for refurbishing and modernising Council?owned homes.

Councillor Nikos Souslous asked for an update on the work being undertaken to roll out electric vehicle charging across the borough. He also queried whether there were opportunities to introduce turbo charging facilities more widely. Hinesh Mehta (Assistant Director Climate Change) explained that, following a recent national government announcement, residents without access to off?street parking would now be permitted to plug their electric vehicles into chargers at home using cross pavement solutions. He noted that the associated grant funding was a limited national pot available to all local authorities. The Council had applied for this funding and was expected to be successful. Officers were currently reviewing how the scheme could be implemented within the borough, including the identification of potential trial sites ahead of any wider roll?out.

Councillor Nikos Souslous requested further clarification on the plans for rolling out additional cycle hangers across the borough. Hinesh Mehta explained that officers were progressing a substantial programme to install new cycle hangers. These were secure, lockable, “breadbin?style” cycle?parking units. He noted that there was significant resident demand for these facilities, and the Council was working to meet that demand as far as possible. Funding for the programme had already been secured. The main limiting factor was now the speed at which manufacturers could supply the units. Once deliveries began, the wider roll?out would proceed.

Councillor Liam Downer?Sanderson asked for further clarification on how the Council increased its commercial income. Councillor Rowan Ree explained that the majority of the Council’s commercial income was generated from advertising sites, and that the Council had consistently over?performed against expected returns in this area.

Kellie Gooch added that the Council was exploring new schemes aimed at reducing reliance on the core council budget. This included income generating initiatives within Highways, as well as seeking external funding that could be ring?fenced and reinvested directly into Highways services rather than drawing on the Council’s own resources. She noted that the intention was to expand and implement these approaches going forward.

Councillor Liam Downer?Sanderson asked a further question regarding the projected budget shortfall for 2026/27 and how this compared to the savings identified.

Councillor Rowan Ree explained that the Council was currently expecting to set a balanced budget for 2026/27. He highlighted that the slide titled “Savings Proposals 2026/27” in the presentation outlined the additional savings required for that year and demonstrated how these savings would contribute to achieving a balanced budget position.

Councillor Liam Downer?Sanderson asked whether it remained the Council’s intention to reopen Hammersmith Bridge to motorised traffic and what the next steps were to progress this. Councillor Rowan Ree explained that reopening the bridge to motorised traffic was still part of the Council’s plan. He explained that a business plan had been prepared to outline how the Council would fund its share of the required bridge improvement works. This plan had been submitted to the Government, and the Council was currently awaiting a decision from the Department for Transport.

Resident Questions

A resident commented that one of the major successes of the Council had been keeping Hammersmith Bridge closed to motorised traffic, which she felt had improved air quality in the borough and encouraged active travel across the bridge without traffic fumes. She also highlighted the proposed electric pod scheme as a positive alternative travel option. She questioned why the Council was not more openly recognising these outcomes as significant achievements for Hammersmith & Fulham. Councillor Rowan Ree responded that these achievements should indeed be recognised, noting that the Council had invested in improvements to the bridge that support and encourage active travel.

The same resident said she was pleased to hear about many of the positive initiatives undertaken by the Council. However, she felt that some schemes such as Sustainable Drainage Systems (SuDS), electric vehicle charging, and the food?waste collection rollout needed to progress more quickly to the Council to meet its target of net-zero by 2030. The Chair acknowledged these points and said officers would explore ways to provide clearer reporting back to residents on progress against targets. She noted that, although progress may at times feel slow, the Council was moving in the right direction, even if improvements were being made incrementally.

Councillor Wesley Harcourt Wesley Harcourt (Cabinet Member for Climate Change and Ecology) added that improvements to Hammersmith Bridge, including measures to enhance segregation for users, were recognised successes. However, he noted that the Council had a legal requirement to work towards reopening the bridge to motorised vehicles.

A resident requested that a report be brought to a future PAC meeting setting out the progress made against all goals adopted from the Climate Commission’s programme, including the expected timelines for delivery of each goal.

Action: Hinesh Mehta

A resident asked if there was a possibility to combine and offer a borough-based app that could bring together parking information and crucial services (such as defibrillators and EpiPens) all in one place. John Galsworthy (Director of Climate Change and Transport) explained that officers could explore this idea, however, delivering such an app was more challenging than the Council would like due to various technology constraints. He noted that, to some extent, Google Maps already offered similar functionality through users overlaying their own data.

A resident asked if there was any financial or budgetary allocation for reopening Hammersmith Bridge to motorists. Councillor Rowan Ree explained that the Council had an obligation to reopen Hammersmith Bridge to motor traffic. Funding was available within the capital budget for bridge maintenance and preparatory work for the wider renovation. He added that there was an agreement for Transport for London (TfL), the Mayor of London, and the Council to each contribute one third of the total cost. The Council was currently waiting for these contributions before progressing further with the proposal.

A resident asked a series of questions. He asked whether the budget was set to meet the net-zero target by 2030. He also requested further clarification on the £120k allocation, which he felt was too small for climate?related work. In addition, he requested details on carbon offsetting, as well as the timelines and funding arrangements for the Community Climate Action Fund. Councillor Rowan Ree explained that the budget had been designed to support the borough’s progress towards achieving the 2030 net-zero target. He highlighted that there was £30 million of capital expenditure dedicated to climate?related initiatives, demonstrating the Council’s ongoing commitment in this area. He further clarified that the £120k referenced was part of the revenue budget, and that most of the climate?related spending was held within the capital budget.

James Newman (Assistant Director - Finance) added that matters relating to carbon offsetting would fall under capital expenditure. He noted that this was covered in a separate report, which would be available as part of the Cabinet agenda for the meeting on 9th February. He confirmed that the carbon offset fund would be included within the Section 106 framework.

Hinesh Mehta (Assistant Director for Climate Change) noted that he would circulate further information regarding the Community Climate Action Fund to the Committee outside of the meeting.

Action: Hinesh Mehta

A resident asked whether there would be an opportunity for a discussion on Hammersmith Bridge and which Committee would consider it. The Chair advised that the most suitable Committee for this matter would be the Economy, Arts, Sports and Public Realm Policy and Accountability Committee. Councillor Rowan Ree added that this could be explored with the Committee Chair for potential inclusion in the Committee’s future work programme.

Action: Amrita White/Charles Francis

RESOLVED:

1. That the Policy and Accountability Committee considered the budget proposals and makes recommendations to Cabinet as appropriate.

2. That the Committee considered the proposed changes to fees and charges and makes recommendations as appropriate.