The Council of Waltham Forest convened for a special meeting on Thursday, 26 February 2026, to address several key financial and operational matters. The agenda included the setting of the Budget and Council Tax for the 2026/27 financial year, alongside the Treasury Management Strategy, Pay Policy Statement, and Members' Allowances Scheme for the same period. Additionally, the Council was scheduled to discuss the rationalisation and proportionality of its committees and review the draft calendar of meetings for the upcoming municipal year.

Budget and Council Tax Setting 2026/27

The Council was scheduled to discuss its proposed budget for the 2026/27 financial year, building upon the Medium-Term Financial Strategy (MTFS) presented in September 2025. This report outlined the Council's plan to meet significant financial challenges, including uncertainty in local government finances, rising service demands, cost of living pressures, and inequality within the borough. The proposals included a Council Tax precept on the Collection Fund amounting to £155.728 million, resulting in a Band D council tax of £1,876.45, representing a 4.99% increase from the previous year. This increase incorporates a 2% adult social care precept and a 2.99% increase for core Council services. The report also detailed funding for earmarked services, budget reductions, the general fund reserve, and a significant Capital Programme of £733.427 million over eleven years. The budget strategy aims to comply with the CIPFA Financial Management Code, set a balanced budget, invest in initiatives for efficiency and service improvement, and strengthen the Council's financial resilience. Significant service pressures were highlighted, particularly in Adults and Children's Social Care and Temporary Accommodation, with a forecast £32.973 million in-year service overspend. The Council has applied for £19 million in Exceptional Financial Support (EFS) from central government to balance the budget in the short term, allowing time for a council-wide change and service redesign programme.

Treasury Management Strategy 2026/27

This report recommended the approval of the Treasury Management Strategy Statement, Minimum Revenue Provision (MRP) Policy Statement, and Annual Investment Strategy for 2026-27. The strategy outlines how the Council will manage its borrowing, investments, and cash flows, prioritising security, liquidity, and yield. It considers the Council's borrowing and investment strategy in light of the capital expenditure plans and economic forecasts, aiming to balance low interest costs with cost certainty. The Council plans to maintain an under-borrowed position, utilising internal cash balances to defer external borrowing where prudent, and primarily borrowing from the Public Works Loan Board (PWLB). The report also detailed prudential indicators, limits on external borrowing, and the maturity structure of debt, confirming compliance with statutory guidance and professional codes of practice. The Annual Investment Strategy maintains a low-risk approach, focusing on high-quality counterparties and liquidity.

Pay Policy Statement 2026/27

The Council was asked to adopt its Pay Policy Statement for 2026/27, in accordance with the Localism Act 2011 and the Local Government Transparency Code 2015. This statement sets out the Council's policies on the remuneration of chief officers in comparison to non-chief officers. The report indicated no substantive policy or financial changes from the previous year. It detailed pay grading and progression for non-chief officers, adhering to the National Joint Council Salary Scales and the London Living Wage. For Chief Officers, the statement outlined remuneration principles focused on fairness, equity, transparency, and value for money, with recruitment processes designed to ensure diversity. The report also included information on trade union facility time, pension scheme employer contribution rates, and termination payments, noting that the Council's current ratio of highest earner to lowest earner is 1:8.24.

Members' Allowances Scheme 2026/27

This report proposed retaining all member allowances for 2026-27 at the rates applied for 2025-26. This decision was made in consideration of the Independent Remuneration Panel's (IRP) recommendations and the Council's fiduciary duty to council taxpayers. The current basic allowance is £13,085.81 per annum, with Special Responsibility Allowances (SRAs) and Co-optee Allowances also remaining unchanged. The report noted that the Council's SRAs are generally lower than the top end of the IRP's recommendations. The total budget for members' allowances, excluding employer's National Insurance Contributions, is set to remain at £1.3 million. The scheme also includes provisions for dependent's carer's allowances and travelling and subsistence allowances for approved duties.

Rationalisation of Committees

The Council was presented with proposals for minor changes to the Scrutiny Committee structure, following a review by the Constitution Working Group. The aim was to rationalise committees for better alignment with the Council's current structure and to consolidate the scrutiny of budget and performance reports within the Scrutiny Coordinating Committee. The key proposal was to merge the Budget Scrutiny Committee with the Scrutiny Coordinating Committee from May 2026. This change was intended to allow for greater oversight, embed performance and finance scrutiny across all committees, and promote a more strategic approach. The report also noted that the Audit and Governance Committee would be appointed to its full membership of six members from May 2026.

Proportionality of Committees

Following changes in the political composition of the Council, a review of committee seat allocations was undertaken to ensure political balance. The report noted the current political balance of the Council: 44 Labour members, 10 Conservative members, 3 Reform UK members, and 3 ungrouped/independent members. Appendix 1 detailed the required allocations on Ordinary Committees and Overview & Scrutiny Committees. The report proposed variations to the standard proportionality rules to ensure continuity of member appointments and representation across committees, given the proximity to the end of the municipal year and upcoming local elections. These variations involved the donation of seats between political groups to maintain existing member allocations.

Draft Calendar of Meetings 2026/27

The Council was asked to approve a draft programme of Ordinary Meetings for the 2026/27 municipal year. This programme, based on the current committee structure and meeting frequency, would be finalised at the Annual Council Meeting in May 2026. The draft schedule outlined the proposed number of meetings for various Council bodies, including Council meetings, Cabinet, Shareholder Committee, Audit & Governance, Planning, Licensing, Scrutiny Committees, and others. The report highlighted that the number and frequency of meetings were balanced to ensure efficient decision-making and performance monitoring, while also noting that significant religious holidays and civic events were considered in scheduling.