The Cabinet of Waltham Forest Council met on Tuesday 6 October 2026, approving an increase to a civil engineering services contract, agreeing to consult on proposals to close a school, and noting a significant funding gap. Key decisions also included the establishment of the Land Release and Community Use Programme to bring council assets to market for community or commercial use, and the final terms for the Avenue Road regeneration project.

Incumbent Professional Civil Engineering Services Term Contract: Proposal to Increase Contract Value

Cabinet approved an increase of 50%, amounting to £2.4 million, to the Professional Civil Engineering (Consultancy) Services Term Contract with The Project Centre Limited. This brings the total contract value to £7.2 million, with the additional funds to be met by third-party grant or income. The contract, initially awarded in 2024 and running until 2028, has supported the delivery of public realm asset investment projects funded by external partners such as Transport for London, the government's 'Levelling-Up Fund', and the Environment Agency. The increased value is necessary to accommodate the unforeseen demands placed upon the contract by recent third-party grant awards, which are directed towards highways, traffic management, and regeneration projects.

The Council considered several alternatives, including adopting a pre-existing framework contract, using a Dynamic Purchasing System, or issuing stand-alone invitations to quote. However, these options were deemed to compromise commissioning agility, obstruct urgent requirements, preclude economies of scale, and compromise contractor quality and availability. Directly recruiting specialist personnel was also considered but deemed impractical due to unpredictable resource requirements and anomalous workloads. The option of 'doing nothing' was deemed not viable, as it would hinder the Council's ability to attract capital investment and sustain neighbourhood economies.

Creating Stronger Schools - Phase 2

Cabinet noted the progress of the Creating Stronger Schools programme and agreed to proceed with Phase 2. A key decision was to consult on proposals to close Edinburgh Primary School. Decision-making powers were delegated to the Strategic Director of Children's Services and the Portfolio Lead Member for Children and Young People to permit changes to schools and proceed with consultations on proposals to close or consolidate schools in areas with the most surplus places. The proposed approach to engagement and support for affected pupils, families, and staff was also noted.

The rationale for Phase 2 stems from falling demand for school places, leading to an unsustainable school estate. The programme aims to reshape the education estate and redirect underused capacity to meet rising demand for Special Educational Needs and Disabilities (SEND) provision. Edinburgh Primary School was identified for rationalisation due to operating at less than 20% capacity. The report highlighted significant surplus capacity in the central part of the borough, with 2077 surplus operating places across all year groups. The closure and repurposing of the Edinburgh site could potentially contribute to increasing SEND sufficiency, although a single school closure is unlikely to resolve the scale of the issue. The risks of not proceeding include continued falling operating capacity, reduced school funding, rising operating costs, stretched teaching capacity, declining pupil progress and outcomes, and increased financial pressure on the Council.

Medium Term Financial Strategy – Refresh

Cabinet noted the potential funding gap of £47.709 million for the three-year period to 2029/30, with a significant portion of £21.729 million in 2027/28. This projection is subject to the assumptions outlined in the report and may change. The latest forecast requirement for Exceptional Financial Support (EFS) in 2026/27 is £6.4 million, based on the month 3 Budget Monitor. The refreshed Medium Term Financial Strategy (MTFS) assumes a council tax increase of 4.99% for each of the three years, which is subject to Council approval. An outline timetable for the budget process was also noted.

The report highlighted significant financial pressures driven by government funding not keeping pace with inflation, rising demand for statutory services, and increasing service delivery costs. Despite substantial savings and transformation programmes, the gap between funding and demand continues to widen. Key cost drivers include inflation, higher borrowing costs, NHS discharge pressures, housing market challenges, care provider instability, and new statutory responsibilities. The Council has already delivered significant savings and transformation programmes, including reducing children in care, senior leadership posts, agency staffing costs, and temporary accommodation pressures. However, these efforts are increasingly strained by ongoing demand and economic challenges.

Making Council Assets Work for Communities

Cabinet agreed to establish the Land Release and Community Use Programme and bring eight sites to market. Four sites – Mission Grove Car Park, High Street Car Park, Richmond Road Car Park, and 247 Markhouse Road – will be marketed for disposal to generate capital receipts. Five other sites – the Former Michael Mallinson Centre land, 66 Larkshall Road, Queen Elizabeth Jubilee Centre, 190-192 Vicarage Road, and 57-59 Farmer Road – will be brought to market for community or commercial use, potentially generating capital receipts or rental income.

Additionally, Cabinet agreed to commence public and statutory consultation to relocate the Leytonstone Family Hub from The Junction to Leyton Library, transforming The Junction site into a new multi-use community hub as part of the Thriving Neighbourhoods programme. In-principle approval was also given to explore leasing The Junction building, subject to consultation, to facilitate the expansion of post-16 learning provision. Progress on bringing vacant and newly constructed buildings into community use or for income generation was noted, including sites at 66 Larkshall Road, the Jubilee Centre, Health Facilities at the Jazz Yard, and the new Civic building at Fellowship Square. Final decisions and negotiation of terms for releasing these sites are delegated to the Strategic Director of Place, in consultation with other relevant directors. A delivery budget was agreed to undertake legal and marketing activities required for site release and use changes, with future sites to be progressed following the initial delivery.

The 'do-nothing' scenario was considered, which would result in sites not generating capital receipts or rental income, potentially forcing the Council to borrow at higher interest rates or seek additional Exceptional Financial Support to balance the Medium-Term Financial Strategy. This would increase financial pressure and limit investment in priority services.

Avenue Road Regeneration Final Terms

Cabinet approved the final delivery terms for Phase 1 of the Avenue Road Estate regeneration. This includes proceeding to Conditional Exchange of the Agreement for Lease with L&G, entering into necessary legal documents to transfer the site under a long lease, and allowing the construction of the first block, comprising 116 social rented homes. Cabinet also approved the viability appraisal and the Council's contribution and financing approach within the financial envelope.

Decision-making powers were delegated for agreeing financial terms (price agreement) by 31st December 2026, and for approving the principal contractor appointment sum (build cost) and final viability appraisal figures. Income from disposed council sites, as detailed in Appendix 6, will be used as part of the funding strategy. A budget of £3.837 million was approved for the completion of Phase 1, and a budget of £400,000 was approved to progress the feasibility of Phase 2, with a further report to follow on financial implications and full delivery proposals for Phase 2. The decant strategy, as set out in Appendix 5, was also approved, along with the undertaking of Rights of Light compensation consultation.

The regeneration of Avenue Road Estate, a council housing estate of 258 homes, has been programmed for several years due to the condition of the existing Large Panel System (LPS) blocks. Bellway Homes, the original developer partner, terminated their involvement in August 2023 due to market conditions. The new delivery model with L&G Affordable Homes aims to deliver Phase 1, comprising 116 social rented homes, through an institutional investment and delivery model. This approach avoids significant upfront capital investment for the Council and places construction, programme, and cost risk with the investor and development partner. The Council will retain the freehold and landlord role, with tenants remaining Council tenants. Phase 2, covering the remainder of the estate, is subject to further feasibility work and market testing. The decant strategy outlines the process for moving residents, offering options to move to new homes on the estate or elsewhere in the borough. The regeneration aims to provide modern, energy-efficient, and accessible homes, reduce housing inequalities, and tackle homelessness.