The Budget and Performance Committee met to discuss the 2026-27 Greater London Authority Group Budget, with a particular focus on the Mayor's proposed allocations and the financial implications for key services including policing, housing, and transport. Key decisions included the allocation of significant funds towards tackling AI's impact on the workforce, supporting high streets, and addressing financial hardship, alongside discussions on the future of policing funding and Transport for London's financial sustainability.

2026-27 Greater London Authority Group Budget

The primary focus of the meeting was the discussion and scrutiny of the 2026-27 Greater London Authority Group Budget. Mayor of London, Sadiq Khan, presented the budget, highlighting both areas of satisfaction and frustration regarding government funding and constraints. He expressed disappointment with the timing of budget settlements, which limited the detail that could be provided for scrutiny.

Key Budgetary Discussions and Decisions:

• AI Task Force: £20 million has been allocated to establish an AI task force to examine the future of work in London and to provide training for Londoners to adapt to AI-driven changes. The Mayor stated that this funding is to set aside for recommendations that will emerge from the task force's work, acknowledging that some jobs may be displaced by AI.
• High Streets and Hospitality Sector: An additional £5 million has been allocated to support high streets and the hospitality sector. This funding is intended to provide TLC to high streets and could involve strategic licensing pilots. Local authorities will be involved in bidding for these funds, as they are considered to best understand their local areas.
• Savings and Efficiency Programme: The GLA Mayor's budget includes a £15.5 million Savings and Efficiency Programme, with approximately £5 million attributed to non-staffing elements. These savings are expected to be achieved through various means, including delivering projects differently and reducing programme spend. The savings are anticipated to be realised throughout the 2026-27 budget year, with quarterly reporting to the committee.
• Young Londoners Funding: A significant allocation of £50 million has been dedicated to Young Londoners, described as the largest new GLA Mayor allocation. While the exact spending details were not yet finalised, the Mayor emphasised the proven impact of previous investments in youth services, citing reductions in youth crime and improved opportunities for young people. The funding will continue to support holiday hunger initiatives and free school meals.
• Tackling Financial Hardship: An additional £2 million has been allocated to tackle financial hardship. While initially described as a one-off expenditure from reserves, it was later clarified that approximately 15% of this funding will be recurring. This initiative has a strong track record, having helped Londoners claim over £94 million in financial support.
• Affordable Housing Programme: Discussions centred on the delivery of affordable housing starts. The Mayor acknowledged the historical hockey stick pattern of delivery, with a concentration of starts in the final quarter of programmes. Measures to encourage a more even spread in the 2026-36 programme include the City Hall Developer Investment Fund to unlock stalled sites, additional call-in powers for smaller developments, and efforts to speed up the Building Safety Regulator's processes. The government's commitment of £11.7 billion over 10 years for affordable and social housing was highlighted, along with incentives for developers to complete schemes by certain dates.
• Ending Rough Sleeping: An additional £8 million has been allocated to support the ambition to end rough sleeping by 2030. This funding will focus on prevention and early intervention, aiming to provide support to individuals before they become homeless.
• Policing Funding: The Metropolitan Police will receive an allocation of £1.26 billion from City Hall, representing a 122% increase since the Mayor took office. The government has also provided additional funding. The focus for the new Met for London Plan 2 is on neighbourhood policing, with an ambition to increase neighbourhood police officer numbers by 399 full-time equivalents. The total number of police officers is expected to remain stable at just over 31,000. Discussions also covered the £29 million allocated for Violence Against Women and Girls (VAWG) funding, which will be directed towards victims and survivors' services, perpetrator behaviour programmes, and supported housing. A specific £2.4 million has been set aside to support victims and survivors of child sexual exploitation.
• London Fire Brigade: Staff costs for the London Fire Brigade are projected to remain broadly flat in 2026-27, with modest increases in subsequent years. Savings and efficiencies have been achieved through redundancies in back-office positions, while frontline capacity has been maintained. Discussions also touched upon the need for sustainable funding for modern firefighting training programmes.
• Transport for London (TfL):
  • Fares Innovation: £20 million has been allocated for fares innovation, aimed at increasing ridership and revenue. This includes exploring new initiatives such as free bus routes and the Hopper Fare, with a particular focus on encouraging bus usage. The Mayor reassured that free travel for children and those over 60 would not be removed.
  • Bus Ridership and Subsidies: Concerns were raised about the increasing subsidy for London buses, which has risen significantly. The Mayor acknowledged the unsustainable trajectory and outlined plans to negotiate better deals with private bus operators and explore bringing services in-house to create a benchmark for costs. The potential impact of increased employer national insurance contributions on bus route viability was a point of contention.
  • Capital Renewals: Investment in capital renewals for TfL is set to return to 2015 levels over the next three years, with efforts to negotiate better deals to reduce costs.
  • Elizabeth Line: The Mayor reassured residents that front desks and ticket offices at Elizabeth Line stations outside the central zone would not be closed.

The meeting also included noting completed and ongoing actions from previous meetings and reviewing the committee's work programme.