The Westminster City Council is scheduled to convene for a Council Meeting on Wednesday, 4th March 2026. The agenda includes a review of the Council's financial plans for the upcoming years, a discussion on the Capital Strategy, and consideration of the Housing Revenue Account Business Plan. Additionally, the Council will address proposed changes to its Constitution and the Members' Allowance Scheme for the 2026-2027 financial year.

Cabinet Report: Business and Financial Planning 2026/27 to 2028/29

The report scheduled for discussion outlines the Council's business and financial plans for the next three years, aiming to support the objectives of the Fairer Westminster strategy. It details a proposed balanced budget for 2026/27, which includes a 2% increase in council tax and a one-off use of reserves amounting to £19.7 million. The medium-term financial plan forecasts an ongoing budget gap of £87.8 million by the third year. The report also notes that central government funding for 2026/27 is confirmed, with indicative grant figures provided for 2027/28 and 2028/29. The proposed budget assumes a freeze in the general council tax element, with a 2% increase specifically for the adult social care precept. This would result in an annual increase of £10.54 for a Band D property. The report highlights significant reductions in grant funding due to the Fair Funding Review, with £75.6 million in annual funding expected to be lost by the third year, although floor protection funding of £24.9 million remains. To address these financial challenges, a transformation programme is proposed, requiring short-term investment but aiming for substantial efficiencies. The recommended net General Fund budget for 2026/27 is £282.666 million, a decrease of £11.4 million from the previous year's adjusted budget. This includes various cost pressures and investments, alongside savings and cost reductions. The report also notes the Housing Revenue Account (HRA) Business Plan and the Dedicated Schools Grant (DSG) allocations.

The Cabinet recommends to Full Council the approval of the Council Tax Resolution, the General Fund net budget, the use of reserves, and various savings, pressures, and investments for 2026/2027 to 2028/29. It also recommends noting the HRA Business Plan and Capital Programme, and approving the proposed rent increases and the continuation of the Westminster Community Contribution scheme.

Capital Strategy 2026/27 to 2030/31

This report details the Council's five-year capital strategy, with forecasts extending to 2039/40. The general fund capital programme proposes a gross budget of £2.550 billion and a net budget of £1.275 billion after accounting for income from grants and capital receipts. The Housing Revenue Account (HRA) capital programme is presented separately within the HRA Business Plan. The long-term investment plan is aligned with the Council's Fairer Westminster policy objectives and is integrated into the financial planning process, considering revenue implications. The capital programme has increased, with significant proposed investment in temporary accommodation acquisitions, offset by future revenue savings. Earmarked reserves are maintained to support the capital programme's financing.

The Cabinet recommends to Full Council the approval of the Capital Strategy, the General Fund capital expenditure, the business case governance process for development and strategic projects, the financing of the capital programme, and delegation of authority for financing decisions to the Executive Director of Finance and Resources.

Integrated Investment Framework 2026/27

This framework aims to consolidate and manage the Council's strategic investment activities, ensuring proportionality and managing risk. As of 31 December 2025, the investment portfolio is valued at £3.551 billion, with short-term investments comprising the largest portion (£600.30 million). The Treasury investment portfolio is currently yielding 4.13%, exceeding the bank base rate. The report outlines the Council's strategic objectives for risk management, current investment levels, and a diversified investment framework to mitigate economic downturns.

The Cabinet recommends to Full Council the approval and implementation of the Integrated Investment Framework, with a target return on investments to at least meet CPI inflation forecasts. It also recommends using Pension Fund investments as a benchmark, adopting specified asset allocation percentage ranges, and agreeing that assets offering good value or strategic value can be acquired, with out-of-borough acquisitions considered by exception.

Treasury Management Strategy Statement for 2026/27 to 2030/31

This report presents the Council's proposed Treasury Management Strategy Statement (TMSS) and Annual Investment Strategy (AIS) for the period 2026/27 to 2030/31. These strategies are required by the Local Government Act 2003 and must align with the Prudential Code for Capital Finance. The report details borrowing strategies, limits, and Prudential Indicators for the next three years, aiming for affordability, prudence, and sustainability. It also outlines policies for managing investments, prioritising security and liquidity, and adheres to guidance from the Ministry for Housing, Communities and Local Government (MHCLG).

The Cabinet recommends to Full Council the approval of the Treasury Management Strategy Statement, borrowing strategy, borrowing limits, Prudential Indicators, Annual Investment Strategy, and the Minimum Revenue Provision Policy. It also recommends delegating authority for financing decisions to the Executive Director of Finance and Resources.

Housing Revenue Account Business Plan

This report presents the updated 30-year Housing Revenue Account (HRA) Business Plan, which is a mandatory annual requirement. It details the financial planning for managing the Council's 20,400 homes, encompassing both revenue and capital expenditure. The plan aims to deliver a sustainable HRA, safeguard planned housing investment, and support objectives such as increasing social housing, improving existing stock, investing in retrofit schemes, and replacing the Pimlico District Heating Undertaking (PDHU) network. For 2026/27, the HRA revenue budget includes a proposed 4.8% rent increase for social housing and a 3.8% increase for non-dwelling rents, with an additional £1.0 million earmarked for a Rent Support Fund. The projected income for 2026/27 is £159.3 million, with expenditure at £159.2 million. The five-year capital programme is £931.1 million, with a 30-year programme totalling £2.5 billion, funded by external sources and the HRA, including additional borrowing.

The Cabinet recommends to Full Council the approval of the HRA revenue budget, noting the longer-term revenue and capital budgets, approving the five-year capital programme, noting the 30-year capital programme, approving the Rent Support Fund provision, approving the rent and non-dwelling rent increases, approving variations to tenant service charges, and noting the HRA reserves and balances.

Westminster City Council Pay Policy 2026/27

This report presents the proposed Pay Policy Statement for 2026-27, which councils are required to prepare annually under the Localism Act 2011. The statement outlines the Council's policies regarding workforce pay, particularly for senior staff and lowest-paid employees. It includes pay data as of 31 March 2025.

The Cabinet recommends to Full Council the approval of the Westminster City Council Pay Policy Statement for 2026-27.

Members' Allowance Scheme 2026-2027

This report details the proposed Members' Allowance Scheme for the upcoming financial year, effective from 1 April 2026. The scheme is prepared with regard to recommendations from the London-wide Independent Remuneration Panel convened by London Councils. The proposed scheme is based on the current scheme, with an increase for 2026-2027 aligned with the salary increase for Council staff agreed by the National Joint Council for Local Government Services. It also incorporates additional seats on the Ratings Advisory Panel and the Discretionary Housing Payments Panel. The Members' Allowance budget is considered sufficient to meet the proposed financial commitments.

The Council is recommended to approve the Members' Allowances Scheme for 2026-2027 and to agree to increase the Basic and Special Responsibility Allowances in line with any salary increase for Council staff.

Constitutional Changes

A report concerning proposed amendments to the Council's Constitution is scheduled for consideration. This includes updates to the Full Council Standing Orders to ensure procedural arrangements for debate, motions, and the conduct of business remain fair and transparent. It also proposes the replacement of the existing, outdated Code of Governance with a new, streamlined version developed in line with best practice. These changes aim to enhance clarity, support accountability, and ensure governance arrangements are proportionate and up-to-date.

The report contains recommendations for Full Council to approve the amended Constitution and adopt the new Code of Governance, authorising the Monitoring Officer to make any minor drafting amendments.