The Budget and Performance Committee of the Greater London Authority Council met on Wednesday 25 February 2026 to discuss the 2026-27 GLA Group Budget. Key discussions focused on the Mayor's budget proposals, including funding for Transport for London (TfL), affordable housing, the Metropolitan Police Service (MPS), the London Fire Brigade (LFB), and the GLA Group Collaboration Programme. The committee also reviewed responses to previous recommendations and noted ongoing actions.

2026-27 Greater London Authority Group Budget

The meeting primarily focused on the Mayor's draft 2026-27 budget proposals. Mayor of London, Sir Sadiq Khan, along with David Bellamy, Mayor's Chief of Staff, and Fay Hammond, GLA Chief Finance Officer, presented and answered questions on the budget.

Key areas of discussion included:

• Funding Settlements and Business Rates: The committee discussed the provisional local government finance settlement, which was more favourable than initially anticipated, providing an additional £155 million. However, uncertainties remain regarding business rates, particularly the impact of reforms and potential challenges from businesses and boroughs, leading to a cautious approach to committing the full amount. The final figures are expected by the end of January 2026.
• GLA Mayor's Budget: Savings of £15.5 million were identified to balance the budget. The Mayor highlighted the loss of UK Shared Prosperity Fund (UKSPF) funding and the pivot towards other programmes, including £10 million allocated for strategic value. Discussions also touched upon the Mayor's commitment to tackling homelessness, with additional funding focused on prevention and support services, including new Ending Homelessness Hubs.
• Transport for London (TfL): The committee raised concerns about the Mayor's decision to freeze bus and tram fares until July 2026, noting that the cost and funding source were not fully established at the time of the announcement. Projections for bus ridership showed a 4.5% decrease in 2025-26, and TfL's plans to reverse this trend were discussed. The budget includes £800 million for capital renewals, an increase from the previous year, but still below the estimated £1.1-1.2 billion required for steady-state maintenance. The DLR extension to Thamesmead was welcomed, with an estimated cost of £1.5 billion, to be jointly funded by the Government, TfL, and the GLA, though specific government contributions remain uncertain.
• Metropolitan Police Service (MPS) and MOPAC: The provisional MPS settlement was noted as being more favourable than initially expected, with an additional £111 million. However, concerns were raised about the £23 million shortfall compared to MOPAC's original budget. Discussions also covered the Mayor's ambition to increase neighbourhood policing, the impact of the proposed National Police Service (NPS), and the ongoing costs of policing protests.
• London Fire Brigade (LFB): The LFB faces a £12 million budget gap, partly due to modern firefighting training costs and the move to 8 Albert Embankment as its new headquarters. The Mayor expressed a commitment to finding a sustainable funding plan for training and acknowledged the need for capital grant funding for fire and rescue services.
• GLA Group Collaboration: The programme has an £8 million budget and aims to deliver efficiencies and shared services. Examples of financial benefits include savings from a shared contract for non-permanent labour (£8 million) and a forecast £3 million annual net benefit from integrated Treasury functions. However, the rollout of the HR shared service, SuccessFactors, has faced challenges and delays.
• Equalities: The Mayor's equality objectives are embedded within the 14 delivery plans. The committee noted that the effectiveness of Objective 9, London's workforce reflects its population, is difficult to measure due to factors outside the GLA's direct control. The Loved and Wanted campaign, with a budget of nearly £1 million, aims to strengthen social cohesion and has engaged with various communities. The allocation of this fund and its key performance indicators (KPIs) will be provided in writing.

The committee made several recommendations, including the Mayor providing updated budget proposals, clarifying funding sources for initiatives like the fares freeze, setting out conditions for reducing subsidy levels for affordable housing, and establishing interim delivery milestones for the new Social and Affordable Homes Programme. They also requested clearer reporting on the DLR extension funding, the financial implications of the Oxford Street project, and the impact of the Mayor's equality objectives on functional bodies.

The meeting concluded with the committee noting the responses received from the Mayor regarding previous recommendations and the ongoing actions from prior meetings. The next meeting is scheduled for 19 March 2026.