The Waltham Forest Cabinet meeting scheduled for Thursday, 19 February 2026, was set to discuss the council's financial outlook for the upcoming year, including the proposed budget and council tax levels for 2026/27. The meeting also included a review of the Housing Revenue Account budget, covering rents and service charges, and an update on the council's capital programme.

Budget and Council Tax Setting 2026/27

A significant portion of the meeting was dedicated to the proposed budget and council tax for the 2026/27 financial year. The report outlined the council's proposed budget, building upon the Medium-Term Financial Strategy (MTFS) presented in September 2025. It detailed the anticipated council tax requirement, including a proposed 4.99% increase for core council services and a 2% increase for the adult social care precept. This would result in a band D council tax of £1,876.45, a 4.99% rise from the previous year. The report also highlighted planned savings totalling £42.113 million over the MTFS period, with £18.594 million targeted for 2026/27. Significant service pressures were noted, particularly in Adults and Children's Social Care, Temporary Accommodation, and Special Educational Needs and Disability (SEND) services. The council had applied for £19 million in Exceptional Financial Support (EFS) from central government to balance the budget in the short term, allowing time for council-wide transformation and service redesign programmes. The report also detailed the proposed capital programme for 2025/26 to 2035/36, amounting to £733.427 million, covering investments in housing, schools, regeneration, and infrastructure.

Budget Monitoring Month 9

The Cabinet was also scheduled to receive an update on the council's financial performance for the 2025/26 financial year as of month 9. The report indicated a projected service overspend of £32.973 million in the General Fund, with pressures identified in Adults and Children's Social Care, SEND, Temporary Accommodation, and Property services. Mitigating factors included underspends in corporate budgets and additional income from grants. The Housing Revenue Account (HRA) was forecasting a net nil variance after transfers to reserves, while the Dedicated Schools Grant (DSG) showed an in-year deficit of £9.464 million, primarily within the High Needs Block, contributing to a cumulative deficit of £18.336 million. The capital programme forecast for 2025/26 was £171.958 million against a revised budget of £239.845 million, reflecting budget corrections and adjustments to delivery plans.

Housing Revenue Account Budget 2026/27 including Rents and Service Charges

The meeting agenda included a review of the Housing Revenue Account (HRA) budget for 2026/27, encompassing proposed rent and service charge increases. It was recommended that HRA dwelling rents increase by 4.8%, in line with the Regulator of Social Housing's Rent Standard (CPI plus 1%), resulting in an average weekly rent increase of £6.41. The report also proposed a new Rent and Service Charge Policy, which would introduce additional charges above formula rent for new tenancies in general needs and supported housing. Increases to garage rents, traveller's site charges, and sheltered accommodation rents were also scheduled for discussion. Furthermore, temporary accommodation rent charges were proposed to increase by 14% above Local Housing Allowance (LHA) levels, reflecting rising market rents. The report highlighted the financial pressures on the HRA due to inflation, interest rates, and increased regulatory requirements, while also outlining the strategy to maintain financial viability and invest in the housing stock. The 10-year MTFS and Capital Programme for the HRA were also presented, detailing planned investments in housing stock maintenance and improvements.

Supplementary Agenda Items

A supplementary agenda was also published, indicating that additional reports, received too late for the main publication, would be discussed if deemed urgent by the Chair. These supplementary items were not detailed in the main agenda document.