The Cabinet of Merton Council met on Monday 21 September 2026 to approve a significant new homes programme, a substantial increase in capital funding for housing, and a regeneration plan for Morden Town Centre. Key decisions also included the adoption of principles for a new Property Asset Strategy, the extension of environmental enforcement contracts, and updates on recycling and waste collection services.

Council's New Homes Programme

Cabinet approved the establishment of the Council's New Homes Programme, aiming to deliver a minimum of 2,500 new homes in Merton over the next decade. This programme will involve a mixed approach to housing delivery, combining council-led direct delivery, strategic partnerships, and acquisitions. A key target is to secure 1,500 new affordable homes by 2036/37, subject to grant funding. To support this ambition, Cabinet recommended an increase of £250 million in Merton's capital funding provision over ten years, to be funded from capital receipts, reserves, and borrowing. Additionally, £1.0 million of General Fund revenue expenditure was approved for 2026/27 to support the programme. Authority was delegated to the Executive Director of Housing & Sustainable Development for various aspects of the programme's delivery, including grant applications, site management, and procurement processes for construction partners and acquisitions. Final contract awards for self-delivery and mixed-tenure sites will be referred back to Cabinet for decision. This programme builds upon previous recommendations and decisions outlined in the Merton's Response to the Housing Crisis paper from November 2025.

Morden Town Centre Regeneration

Progress on the Morden Town Centre Regeneration Programme was noted, following Cabinet's approval of the procurement of a development partner in January 2026. The Town Centre Vision and Strategic Objectives for the new Civic Hub were also noted, which will guide the procurement process. The updated procurement programme targets the launch of Pre-Market Engagement by the end of September 2026, with formal procurement commencing at the end of November 2026. A planned communications programme and engagement approach for the period before, during, and beyond procurement were also noted. The regeneration aims to create a vibrant destination, enhance the high street, improve public spaces and connections to green spaces, and introduce new opportunities for sport, leisure, culture, and community activity, alongside new and affordable homes.

Property Asset Strategy Principles and Corporate Landlord Model

Cabinet approved the principles of the Property Asset Strategy and agreed to implement a Corporate Landlord Model. This model aims to ensure the property portfolio is safe, fit for purpose, and effectively planned, taking into account future organisational changes. A strategic asset review of all Council assets will be formally commenced. The asset review will be ongoing, with further reports to be presented to Members. Authority was delegated to the Executive Director of Housing & Sustainable Development to make necessary appointments for the strategy's development and implementation, including ensuring assets for disposal are handled efficiently and at the best obtainable price. The full Property Asset Strategy will be presented to Cabinet in Winter 2026. Disposals with an anticipated value of £3 million or more will be presented to Cabinet for decision, unless commercial interests would be prejudiced by a delay. Authority to agree disposals valued below £3 million was delegated to the Executive Director of Housing & Sustainable Development in consultation with the Cabinet Member for New Homes and Regeneration.

Recycling and Waste Collection Services Contract Update 2026

Cabinet noted the key performance indicators for the first year of the Recycling and Waste Collection Services contract, which commenced on 1 April 2025. A variation to the contract with Veolia was approved for £92,000 for 2026/27 to support the free bulky waste service. Additionally, £750,000 in capital growth was approved to implement improved containerisation for all kerbside households for dry, mixed recycling. Authority was delegated to the Executive Director of Environment, Civic Pride and Climate, in consultation with the Lead Member for Cleaner Streets, Environment and Transport, to approve any subsequent contract variations permitted by the Council's Contract Standing Orders. The update highlighted improvements in street cleanliness and a reduction in fly-tipping, with the contract designed to accommodate future legislative changes such as Simpler Recycling reforms.

Environmental Enforcement and Animal Welfare Contract – Extension and Variation

Cabinet approved the extension of the environmental enforcement contract for two years, from April 2027 to April 2029, excluding the stray and abandoned dog provision. A separate procurement exercise will be conducted for the stray and abandoned dog contract, commencing in April 2027, as this is a statutory responsibility for local authorities. The variation to remove the animal welfare aspect from the current contract was noted. Authority was delegated to the Executive Director of Environment, Civic Pride and Climate, in consultation with the Cabinet Member for Cleaner Streets, Environment and Transport, to award any subsequent contract variations. The report indicated a decline in income from Fixed Penalty Notices, attributed to improved local environmental quality and higher compliance, which is seen as a positive outcome.

Cleaning Contracts

Cabinet approved the procurement approach for the Corporate Cleaning Contract, due to expire on 31 March 2027, and the Schools Cleaning Contract, due to expire on 31 July 2027. The procurement will be conducted via a further competition using a framework for the supply of cleaning services, in accordance with the Procurement Act 2023 and the Council's Contract Standing Orders. Authority was delegated to the Executive Director of Housing and Sustainable Development to award the subsequent contract(s), in consultation with relevant Executive Directors and Cabinet Members. Delegation was also agreed for contract extensions or variations, permitted by the Council's Contract Standing Orders, to the Executive Director of Housing and Sustainable Development in consultation with relevant Executive Directors and Cabinet Members. The approach involves a two-lot tender process to accommodate the different requirements of corporate and school sites, with a lag-start for the schools' contract.

Period 3 Financial Monitoring Report

Cabinet noted the financial position on revenue for Period 3 (June) 2026/27, showing a net overspend of £2.619 million. Proposed adjustments to the capital programme, as detailed in the appendices, were approved. Cabinet also approved the release of £478,000 from reserves: £164,000 from the Parking and Highways fund reserve for ANPR Cameras and £365,000 for Parking Transformation Costs, to be allocated to the Environment Civic Pride and Climate directorate. Furthermore, £235,000 from the Strategic Priorities Reserve was approved to fund Community Safety Untidy Land action, and £228,500 from the Strategic Priorities Reserve was approved for Arboriculture Parks Backlog, to be allocated to the Green Spaces Budget. Delegated authority was granted to the Executive Director for Adult Social Care, Integrated Care and Public Health, in consultation with the Cabinet Member for Health & Social Care, to negotiate and finalise terms for the s75 Agreement for Better Care Funded Services between the Council and the Southwest London ICB for 2026/27. The report highlighted significant financial pressures in Children's Social Care, Adult Social Care, and Temporary Accommodation, alongside challenges with the Dedicated Schools Grant (DSG) High Needs budget. Mitigation plans and recovery strategies are in place to address these pressures.

The meeting was held on Monday 21 September 2026.