The Budget and Performance Committee meeting on Tuesday 6 January 2026 focused on the 2026-27 Greater London Authority Group Budget, with significant discussion dedicated to affordable housing delivery, the financial sustainability of the Metropolitan Police Service (MPS), and the operational efficiency of the London Fire Brigade (LFB). Key decisions included noting the action taken by the Chairman regarding a letter to the Mayor of London concerning the LFB budget and agreeing to delegate authority for any outputs arising from the meeting.

Affordable Housing and Development

The committee heard from a panel of guests from the Greater London Authority (GLA) regarding the challenges and progress in delivering affordable housing in London. Deputy Mayor for Housing and Residential Development, Tom Copley, highlighted the implementation of recommendations from the London Housing Delivery Task Force, including a £39 billion, 10-year social and affordable homes programme, of which London will receive nearly £12 billion. He also mentioned the £322 million City Hall Developer Investment Fund and the vital DLR extension to Thamesmead, which is expected to unlock 30,000 homes.

However, concerns were raised about the viability of building in London due to high construction costs and interest rates. Assembly Member Krupesh Hirani questioned the projected figures for affordable homes, noting that the Affordable Homes Programme 2016-2023 delivered approximately 3.4% of the target as directly funded affordable homes. The committee also discussed the upcoming 2026-36 Social and Affordable Homes Programme, with a focus on ensuring value for money and learning from previous programmes. Amy Simmons, Interim Head of Area for Northwest London Housing and Land at the GLA, emphasised the rigorous scrutiny applied to grant funding proposals to maximise delivery.

Discussions also touched upon the City Hall Developer Investment Fund, with Simon Powell, Assistant Director of Strategic Projects and Property at the GLA, confirming that the fund would support private and housing association development, particularly through gap funding. The success of the fund will be measured against targets still being negotiated with the government.

The London Legacy Development Corporation (LLDC) presented its plans, aiming to deliver 5,900 homes by the late 2030s, with 42% affordable and 18% low-cost. Darren Parker, Executive Director of Development at LLDC, clarified that 37% of homes delivered to date have been affordable, with a blended rate of 42% expected by 2036 due to earlier sites having a 35% threshold under previous mayoral regimes.

Places for London, a subsidiary of Transport for London (TfL), reported completing 1,644 homes with 56% affordable housing and having planning permission for up to 4,000 homes at Earls Court. Graeme Craig, Director and Chief Executive of Places for London, explained that the organisation is self-financing, with profits from commercial activities recycled into housing.

The Old Oak and Park Royal Development Corporation (OPDC) aims to deliver 1,500 homes in its first phase by March 2030, with an analysis suggesting 50% affordable housing, targeting 70% market-facing shared ownership and 30% affordable rent. Dame Karen Buck, Chair of OPDC, acknowledged the slow progress but highlighted recent significant advancements in land assembly and imminent procurement for a development partner.

Metropolitan Police Service (MPS) Budget and Officer Numbers

The committee scrutinised the MPS budget for 2026-27, with a significant focus on how a £150 million budget gap for the MPS was addressed. Dan Worsley, Chief Finance Officer at the MPS, explained that this was achieved through a combination of efficiencies (£20 million), balance sheet management (£15 million), and an assumption of increased National and International Capital City (NICC) grant funding from the Home Office. However, concerns were raised about the reliance on this unconfirmed NICC funding.

Assembly Member Alessandro Georgiou highlighted a significant drop in overall police officer numbers, from over 33,000 to 31,258, despite the Mayor's manifesto commitment to increase officer numbers. Deputy Mayor for Policing and Crime, Kaya Comer-Schwartz, stated that this was managed through natural attrition and a slowdown in recruitment, with a focus on redeploying officers from back-office roles to neighbourhood policing. Marie Heracleous, Chief Business Services Officer at the MPS, confirmed that 560 officers were civilianised in the previous year, with no further civilianisation planned for the upcoming year due to the need to maintain officer numbers.

The committee also discussed the £137.5 million allocated to Professionalism, which includes work on conduct, culture, behaviours, diversity, and vetting, with a request for a breakdown of costs related to handling complaints.

London Fire Brigade (LFB) Budget and Financial Sustainability

The draft budget for the LFB for 2026-27 was discussed, with Commissioner Jonathan Smith emphasising the need to protect the front line, invest in operational training, and maintain regulatory functions due to an evolving risk environment. Jules Pipe CBE, Deputy Mayor for Planning, Regeneration and the Fire Service, noted that savings were being made from the 17% of the budget that supports infrastructure, rather than the 83% allocated to front-line services.

Concerns were raised about the LFB's reliance on reserves, with Mostaque Ahmed, Director of Corporate Services at the LFB, stating that earmarked reserves were being drawn down as planned, but the general reserve was below the recommended 2-3% threshold. The lack of capital grant funding from the government was identified as a significant structural challenge, contributing to increased borrowing costs for essential capital investment, including the redevelopment of 8 Albert Embankment as the new LFB headquarters.

The committee also discussed the LFB's commitment to net zero targets, with a significant funding gap identified, particularly for fleet replacement. The pragmatic approach of integrating green initiatives into core capital investment, such as replacing old boilers, was highlighted, alongside the exploration of initiatives like using hydrogenated vegetable oil for fleet emissions.

Violence Reduction Unit (VRU) Funding

Lib Peck, Director of the Violence Reduction Unit (VRU), presented the VRU's budget, which is forecast to be £35.1 million for 2026-27. While the VRU has a balanced budget, a reduction in Home Office funding from £10.5 million to £9.4 million was noted, although this was partly offset by the transfer of a violence and exploitation contract from MOPAC with its associated budget. Peck highlighted the continuation of flagship programmes like MyEnds and the expansion of education projects and after-school activities.

Other Matters

The committee also noted the action taken by the Chairman under delegated authority to agree a letter to the Mayor of London regarding the 2026-27 GLA Group Budget - London Fire Commissioner. The committee's work programme and meeting dates were also noted, with the next meeting scheduled for 7 January 2026.

The meeting also saw discussions on the cost of policing Premier League football games, with a net cost of £14 million to Londoners and a call for full cost recovery. The Estate Strategy for the MPS was also a point of discussion, with a commitment to provide detailed costings for the closure of front counters, including Chingford Police Station. The committee also received information on the budget for facial recognition technology and the ongoing work on climate adaptation within the MPS estate.