The Executive of Bromley Council met on Wednesday 21 January 2026 to discuss the draft budget for 2026/27, progress on the Transforming Bromley programme, and updates on housing schemes and urgent contract awards. Key decisions included the approval of the draft budget, endorsement of significant savings targets from the transformation programme, and the urgent award of a new contract for Direct Payment Support Services.

Draft Budget and Financial Strategy Update

The Executive agreed to the initial draft budget for 2026/27, noting that significant financial challenges remain, with an estimated budget gap of £61.1 million per annum by 2028/29. This gap is largely attributed to disappointing government funding settlements, particularly the outcome of the Fair Funding 2.0 review, which will result in cash reductions of £22 million per annum by 2028/29. The Council also faces cumulative Dedicated Schools Grant (DSG) funding deficits. To address these pressures, the Executive agreed to increase rent levels for London Affordable rents and Social (Formula) rents by 4.8% from April 2026. The setting of the schools' budget was delegated to the Education, Children and Families Portfolio Holder, with consultation with the Schools Forum. A contribution of £248,047 to the London Boroughs Grant Committee was also agreed. The Executive noted that final decisions on recommended Council Tax and Adult Social Care precept levels would be made at the next meeting.

Transformation Report 2024-2028: Two Year Progress Report 2025-26

The Executive endorsed the progress made in the first two years of the 'Transforming Bromley' programme, which aims to improve services, deliver savings, and mitigate growth. The programme has successfully delivered 95% of its initial opportunities, identifying approximately £50 million in savings. Year One (2024/25) saw £18 million in savings delivered, with 95% of planned work completed. For Year Two (2025/26), an additional £29.3 million in savings has been identified, contributing significantly to balancing the Medium-Term Financial Strategy (MTFS). The Executive agreed to £1.5 million in staffing budget savings, to be achieved through realignment, deletion of vacant posts, and a small number of redundancies, in line with the Council's Managing Change HR procedures. Officers were congratulated on the successful delivery of the programme.

Housing Schemes Progress Committee Report - Part 1 (Public) - Including Award of Main Works Contract

The Executive received an update on housing schemes in direct delivery, with a specific focus on the Beckenham Housing Scheme. Authority was delegated to the Director of Housing, Planning and Regeneration, in consultation with the Portfolio Holder for Renewal, Recreation and Housing, to finalise contract documentation and enter into a contract for the Beckenham Housing Scheme, subject to securing grant monies to keep the total cost within budget. The scheme has been allocated Section 106 monies totalling £353,962, and approval was granted to include a supplementary capital estimate of this amount, funded through these contributions, in the capital programme. Authority was also delegated to submit a bid for the 'London Social and Affordable Homes Programme 2026-36' funding administered by the GLA.

Notice of the Urgent Award of a Contract for the Direct Payment Support Service

In response to the insolvency of the previous contractor, Vibrance Ltd, the Executive noted the urgent direct award of an interim Direct Payments Support Service contract to The Disability Syndicate. This two-year contract, commencing 17th November 2025, has an estimated whole life value of £563,907. The financial implications of the previous provider's insolvency were also noted, with funding to be drawn from the Council's Financial Planning and Risk earmarked reserve.

Consideration of Any Other Issues Referred from the Executive, Resources and Contracts Policy Development and Scrutiny Committee

The Executive noted a recommendation from the Executive, Resources and Contracts PDS Committee regarding an Empty Homes report. It was further noted that the tax implications of empty homes would be reviewed as part of the 2027/28 budget setting process.

The meeting concluded with the Executive resolving to exclude the press and public for the consideration of exempt information relating to housing schemes and the urgent award of a contract for the Direct Payment Support Service.