The Budget Scrutiny Committee of Waltham Forest Council met on Tuesday 25 November 2025 to review the council's financial position. The meeting agenda included discussions on the proposed fees and charges for the 2026/27 financial year, an update on the council's reserves, and a review of the Medium Term Financial Strategy (MTFS) position. The committee also received a scrutiny report and an update on the council's budget monitoring.

Budget Review – Fees and Charges 2026/27

The committee was scheduled to review the proposed fees and charges for various council services for the 2026/27 financial year. The report indicated an overall proposed increase in income budgets of £1.553 million, aiming for full cost recovery and alignment with market rates where applicable. Some fees are set by statute and would increase in line with allowable limits. The proposed increases were intended to be implemented from February 2026, or no later than April 2026, to help reduce the current in-year overspend.

Specific proposals included:

• Communications: A 3.8% increase for Waltham Forest News and outdoor advertising sites, with lamppost banner advertising charges remaining unchanged to build market interest.
• Stronger Communities Directorate:
  • Culture: No increases were proposed for venue hire, licensing, and retail at the William Morris Gallery, apart from image reproduction and exhibition loans, and school workshops. Vestry House Museum, currently undergoing refurbishment, would have an operator upon reopening to generate rental income. Archives service fees would align with other London archives.
  • Registrars and Ceremonies: Increases of between 1% and 25% on non-statutory fees for the Registrar's service, with an overall income target uplift of 2.35%. Statutory fees would remain unchanged. The Citizenship service proposed increases of between 14% and 30% on non-statutory fees, with an income target uplift of 9.09%.
  • Queens Road: A proposed 7.5% increase in charges, aligning with market value and other local authorities.
  • Libraries and Adult Learning: A 10% increase on lettings fees and charges, and 5-10% for other fees, though the overall income budget for Libraries would remain unchanged due to room hire restrictions. Adult Learning fees would see an average 10% increase, benchmarked against neighbouring authorities. Budget adjustments were needed due to the GLA lowering criteria for free courses.
• Adults Social Care Directorate: Proposals were reviewed in light of the Care Act and Personalisation agenda. Charges are based on unit costs and reviewed against other boroughs. Residents are only expected to pay what they can afford, with increases impacting only full cost payers. Community Alarms and Telecare charges were proposed to increase by 5%, with specific weekly charges for each service. Dementia Support charges were proposed to increase by 5%. In-house residential accommodation charges were reviewed for cost changes, with a proposed maximum fee increase of around 7% for new residents, bringing the weekly cost to £1,327.00. Homecare services fall under Community-based services and are governed by the Fairer Contributions Policy.
• Children's and Education Directorate:
  • Education Music: A 5% increase for Waltham Forest Music, effective from September 2026, to cover increased staffing costs.
  • Education Welfare: A fee of £80 if paid within 21 days, reflecting statutory guidance. An income of £40,000 was assumed, dependent on penalty issuance.
• Place Directorate (Non-Housing):
  • Regeneration, Planning and Delivery: Planning application fees are nationally set and were increased in December 2023, with automatic inflation increases. Pre-application planning advice charges were to increase by 5-10% to account for inflation and service demands. Building Control fees were proposed to increase by 10% to fund a recruitment and retention package. Land Charge fees were proposed to increase by 3%, based on benchmarking. Despite these increases, overall income from planning, Land Charge fees, and Building Control was being held at 2025/26 levels due to a market downturn.
  • Commercial Property Investment: The property services lettings service fee was not set to increase, after benchmarking against private providers.
• Place – Housing: Homelessness Service would recover full costs for relocating possessions, with administration charges removed. Housing Revenue Account fees and charges increased by an average of 5.5%, consistent with other local authorities.
• Neighbourhoods and Environment:
  • Regulatory Services & Contingency Planning: Street Trading fees were recommended for increase to ensure financial sustainability, with a 2% increase for permanent traders and a minimum 5% increase for casual traders. Statutory fees for Environmental Health and Trading Standards are nationally set. Discretionary licensing schemes saw significant fee increases of around 20%.
  • Neighbourhood Services: Fees were reviewed through benchmarking, with average increases proposed for Cemeteries (7.3%), Green Space (4.3%), Pastures (8.8%), Sports pitches and Open Spaces (8%), Leyton sports (9.78%), Waste replacement bins (3.4%), Parking Fees (5.5%), and Highways (1.5%). Highways income had a £110,000 budget increase, mainly due to fee increases in Highway Licensing and Cycle Hangars. Waste replacement bin charges could not be implemented until the 2026/27 billing cycle. Cemeteries fees were benchmarked and designed to cover increasing costs, with the new crematorium expected to boost income. Allotment rental increases were to offset maintenance and utility costs. Parks and Open Spaces fees were benchmarked for event hire. Fixed penalty notice charges for littering, fly-tipping, graffiti, and flyposting were increased to reflect new statutory guidelines. Dog and licensing charges were revised with an average 5% increase.
  • The Hive: Fees and charges were set to increase by an average of 5% for new bookings from February 2026, benchmarked against similar centres. Corporate venue hire and visits were increased to contribute to income targets.
• Resources Directorate:
  • Revenues and Benefits: Council Tax court costs were to increase by £21 (21%) from January 2025. Business rates court costs were to remain unchanged. A further review in September 2025 allowed for a small uplift in fees, with Council Tax rising by £13.00 to £133.50 and Business Rates rising by £24.00 to £223.50, effective from April 2026.
  • Governance and Law (Mortuary): Mortuary charges were comparable with other London mortuary costs and reflected service provision costs.

The report estimated that the fees and charges review would generate an additional annual income of £1.553 million, contributing £0.925 million towards fees and charges inflation in the MTFS and the remainder to savings associated with the Parking service. An Equality Impact Assessment (EqIA) screening was undertaken, determining minimal impact on the Council's equality duty, as most increases were on optional services or small enough to not have a significant impact.

Reserves Summary 2025-26

The committee was presented with a report summarising the council's reserves, explaining why they are held, and outlining their purpose. The report defined various terms related to reserves, including available earmarked reserves, working balances, and other unusable reserves. It highlighted that reserves are crucial for managing financial risks, such as fluctuations in Housing Benefit subsidy claims and the North London Waste Levy.

Key corporate reserves mentioned included:

• Budget Strategy Reserve (BSR): £13.965 million at 31 March 2025, used to support a balanced budget over the MTFS period and fund transformation programmes.
• Tax Base Fluctuation Reserve: £10.367 million at 31 March 2025, to manage fluctuations in council tax and business rates income. £1.352 million was to be used in 2025-26 to offset estimated collection fund deficits.
• Levies Equalisation Reserve: £5.512 million at 31 March 2025, to mitigate the impact of forecast increases in the North London Waste Levy.
• Revenues and Benefits Reserve: £5.099 million at 31 March 2025, to mitigate fluctuations in Housing Benefit subsidy and overpayments.

The report also noted a General Fund working balance of £14.906 million, considered a last-resort emergency reserve. The Housing Revenue Account (HRA) working balance was £6.905 million, considered low compared to other local authorities. The council also held balances for individual schools (£11.339 million) and a negative DSG balance of £14.891 million as at 31 March 2026.

The report detailed various financial risks, including increased demand for services, high inflation, reduced government funding, business rate reforms, economic instability, potential transfer of responsibilities, population growth, and deficits in the High Needs Block. It also outlined ongoing risks such as budget control, support for asylum seekers, homelessness pressures, and the impact of the private rented sector collapse.

The forecast for General Fund Earmarked Reserves as at 31 March 2025 was £53.5 million, projected to decrease to £46.3 million by 31 March 2026, due to investments in service improvements, savings projects, and funding MTFS gaps. The report provided a summary table of General Fund Reserves for March 2025 and 2026, detailing movements and balances for various categories.

The Scrutiny Report

The committee was invited to review the Scrutiny Forward Plan for the remainder of the municipal year. This plan outlines the committee's work programme, including statutory reports, major decisions, themed reviews, and policy areas of interest. Members were encouraged to suggest future agenda items. The report also included an Action Tracker, detailing actions required from officers at previous meetings, and a Recommendation Tracker, outlining the committee's conclusions and suggestions for service improvements. Key decisions falling under the committee's remit in the upcoming Cabinet Forward Plan were also highlighted, including Financial Monitoring, Budget Review – Fees and Charges, and Council Tax Support Scheme 2025-2026. The committee was asked to review these items and suggest further topics for the 2025-26 municipal year.

The report also included an action response detailing information on local authorities that had applied for Exceptional Financial Support (EFS), listing amounts requested by various councils including Barnet, Birmingham, Bradford, and Croydon. Additionally, a response to an action regarding an independent review of social care by PeopleToo was provided, outlining the approach, deliverables, and recommendations for both the residential and nursing home market, and the supported living market. This review indicated that the initial phase of work had delivered in-year benefits against targets and projected further benefits by 2027/28. Recommendations included finalising new contracts, establishing baseline rates, clarifying funded nursing care payments, and developing a long-term commissioning model for the residential and nursing market. For supported living, recommendations focused on improving data quality, addressing rate variations, and aligning with the council's technology-enabled care strategy.