The Budget Scrutiny Task Group of Westminster Council met on Wednesday 28 January 2026 to consider the council's Medium Term Financial Plan, including revenue and capital overviews. Discussions were also scheduled regarding the Environment and Communities Directorate and the Regeneration, Economy and Planning Directorate.

Medium Term Financial Plan

The task group was scheduled to review the Medium Term Financial Plan (MTFP), which outlines the council's financial strategy for the coming years. This included an examination of the revenue and capital budgets.

Revenue Overview

Under the revenue overview, several key areas were slated for discussion. These included the implications of the Local Government Funding Reform, which the government relaunched in December 2024 with a commitment to implement changes from 2026/27. The agenda indicated a focus on how this reform, particularly the refreshed funding formula considering population and deprivation, and the intention to 'equalise resources' by looking at council tax bases, would impact Westminster's funding. The Provisional Finance Settlement, published on 17 December 2025, was also to be reviewed, detailing national and Westminster-specific core spending power projections.

An Updated Budget Position was to be presented, highlighting changes since the position reported to Cabinet in May 2025. This section detailed a significant budget gap projected by 2028/29, which did not include any council tax increases. The agenda also outlined the 2026/27 to 2028/29 General Fund Revenue Budget, including proposed savings, service pressures, and investments. Notably, a Transformation Programme called Westminster 2030 – Fit for the Future was to be discussed, aiming to deliver at least £30m per annum in efficiencies by its third year, supported by an initial £4m investment. This programme is designed to ensure the organisation remains modern, people-centred, and financially resilient, with six key objectives including modernising services, transforming customer experience, enabling early intervention, embedding digital innovation, optimising assets, and strengthening financial resilience.

Capital Overview

The capital overview was set to detail the council's current and proposed capital programmes. The Current Capital Programme was approved in March 2025, with a gross budget of £2.496bn and a net budget of £1.320bn. The agenda indicated a review of new investment priorities within the Proposed Capital Programme, including significant allocations for Regent Street (£34m) to improve safety and the pedestrian experience, Temporary Accommodation Acquisitions (£170m) to support planned acquisitions on an invest-to-save basis, and the Housing Pipeline (£28m) for redeveloping sites to increase affordable homes. The Pimlico Place Strategy (£3.8m) was also listed for discussion, focusing on public realm improvements.

The Capital Programme – General Fund was to be presented, showing a breakdown of expenditure by Executive Directorate. The Proposed Programme table detailed the revised General Fund capital programme, with significant allocations for Housing & Commercial Partnerships, Westminster Builds, Environment & Communities, and Regeneration, Economy and Planning.

Budget, Key Issues, Initiatives, Pressures and Investments for Adults Social Care and Children's Services

The agenda indicated that specific budget details, key issues, initiatives, pressures, and investments for Adults Social Care and Children's Services were to be examined.

Environment and Communities Directorate

The task group was scheduled to review the Environment & Communities Directorate (E&C) budget. For 2025/26, the directorate had a gross controllable expenditure budget of £183.068m and an income budget of £164.103m, resulting in a net budgeted contribution from the General Fund of £18.965m. The directorate aimed to operate with a net nil revenue budget by the end of the next MTFP period, despite rising service demands and inflationary pressures.

The agenda detailed proposed new savings totalling £20.410m over the period 2026/27 to 2028/29, in addition to existing savings of £12.054m. These savings were categorised into three areas: generating increased income (£9.07m), delivering service efficiency and innovation (£5.24m), and better regulation and enforcement (£6.1m). Specific proposals included increasing income from parking, commercial waste, markets, and leisure contracts, as well as efficiencies in highway maintenance, waste disposal, and staffing.

The directorate's operating context was described as managing a city with a large resident and daytime population, a busy highway network, and numerous parks and open spaces. The agenda also highlighted the directorate's role in supporting public health, wellbeing, and safety through regulatory functions.

The Capital Programme and Review Process for the Environment & Communities Directorate was also to be discussed. The 5-year capital programme (2026/27–2030/31) had a gross expenditure forecast of £265.607m, with key projects including Community Hubs, the Main Fleet Replacement Programme, Public Conveniences, Disabled Facilities Grants, Cycling Schemes, Street Trees, and PPM Highways/Lighting/Bridges & Structures.

Regeneration, Economy and Planning Directorate

The Regeneration, Economy and Planning (REP) Directorate's revenue budgets were scheduled for review. For 2025/26, the directorate had a gross controllable expenditure budget of £31.733m and an income budget of £24.303m, resulting in a net controllable budget of £7.430m. Savings of £3.820m were proposed for the MTFP period, with £0.835m from previous MTFP processes and £2.985m in new savings. Two pressures totalling £1.209m and one investment totalling £0.308m for 2026/27 were also identified.

Key issues discussed included the Social Housing Affordable Homes Programme 2026-2036, the London's position as the most productive region in the UK, and the unclear impact of the pandemic on productivity growth. The importance of the West End to Westminster's economy was highlighted, alongside reductions in planning applications and a slowdown in the housing market leading to less funding from CIL and s106 agreements. The freezing of WAES funding streams and the replacement of the UK Shared Prosperity Fund by the Local Growth Fund were also noted.

The agenda detailed the REP Directorate's funding streams and income sources across its departments, including Culture and Placeshaping, Regeneration and Development, Economy and Skills, and Town Planning and Building Control.

The 5 Year Capital Programme for Regeneration, Economy and Planning (2026/27 – 2030/31) had a gross budget of £858.264m. Key projects included the New Housing Pipeline (£88.121m gross), the Lisson Grove Programme (£174.450m gross), 291 Harrow Road (£96.364m gross), and the Church Street Partnership Investment (£89.168m gross). Significant investment was also planned for Westminster Builds (£261.737m gross), Regent Street, Haymarket and Piccadilly (£20.892m contribution), and Placeshaping and Culture initiatives such as District High Streets and the North Paddington Programme.

The Housing Revenue Account (HRA) capital budgets were also to be reviewed, with a 5-year capital programme forecast of £838.8m. Major projects within this included Ebury Phase 2 (£144.3m gross) and the Church Street Site Regeneration (£229.4m gross).