The Cabinet of Harrow Council met on Thursday 19 February 2026 to discuss a range of significant financial and strategic matters. Key decisions included the approval of the final revenue budget for 2026/27 and the Medium-Term Financial Strategy to 2028/29, alongside the final capital programme for 2026-27 to 2028-29. The meeting also addressed the commissioning of statutory advocacy services and the adoption of a new Social Housing Allocation Scheme.

Final Revenue Budget and Medium-Term Financial Strategy

The Cabinet recommended the final revenue budget for 2026/27 to the Council for approval, which aims to achieve a balanced budget for the year. However, estimated budget gaps of £7.594 million for 2027/28 and £2.567 million for 2028/29 were noted. The intention to increase core Council Tax by 2.99% and the Adult Social Care Precept by a further 2% for 2026/27 was also noted. The Cabinet approved the Medium-Term Financial Strategy (MTFS) to 2028/29 and recommended the Annual Pay Policy Statement and Capital Receipts Flexibility Strategy for Council approval. Decisions were delegated to the Strategic Director of Resources and Innovation regarding the allocation of the Crisis and Resilience Fund. The Schools Budgets for 2026/27 and the Public Health Budget for 2026/27 were noted, as was the assumed funding for social care through the Better Care Fund.

Capital Programme

The Cabinet recommended the final Capital Programme for 2026-27 to 2028-29 to the Council for approval. This programme includes significant investment in the General Fund and Housing Revenue Account (HRA). Notable additions include £15 million for Invest to Save capital projects, £2.5 million for in-house residential provision for children with disabilities, and £4.357 million for Additional Basic Need Funding for schools. The report also detailed the proposed capital programme for the HRA, totalling £751.419 million over ten years, which includes £162.926 million for investment in housing stock and £16.448 million for decarbonisation and retrofit. A further £572.045 million is allocated for the New Affordable Homes Programme. The Cabinet also approved an addition to the 2025/26 Capital Programme of £0.781 million, funded from borrowing, to meet match funding requirements for the Local Authority Housing Fund (LAHF) Round 3.

Housing Revenue Account (HRA) Matters

The Cabinet approved several recommendations concerning HRA budgets and rent setting for 2026-27. This included approving average weekly rent increases of 4.8% for general needs, sheltered, affordable rented, and shared ownership properties, in line with national policy. Service charges for general needs tenants will see an average increase of 8.16%, while sheltered housing service charges will see a reduction of 1.38%. Facility charges for sheltered properties will decrease by 34.5%, and the enhanced weekly management charge for sheltered properties will remain unchanged. Water charges will increase by 3.8%, and garage and parking charges will see an increase. Community hall hire charges will also increase by 3.8%. The Cabinet approved the HRA 30-year Business Plan, HRA Budgets for 2026-27, and the 10-year HRA Planned Investment Capital Programme. Authority was delegated to the Strategic Director of Housing and Regeneration for finalising the New Homes Programme and approving grant applications.

Other Key Decisions

The Cabinet approved the procurement of a new contract for Wide Area Network (WAN) services, with a direct award to Virgin Media Business for a five-year period from July 2026 to June 2031, with an estimated value of up to £800,000. This decision aims to safeguard essential network services and support the Council's digital transformation objectives.

Decisions were also made regarding the commissioning of Adult Social Care Supported Accommodation, including access to the West London Alliance (WLA) Dynamic Purchasing System (DPS) and direct awards for Learning Disabilities and Autism supported accommodation. Authority was delegated to the Strategic Director of Adult Social Care and Public Health for contract awards and to review options for transferring care elements of supported living services.

The Cabinet noted the report from the Harrow Community Partnership, highlighting collaborative approaches with the Voluntary and Community Sector and proposed priorities for 2026.

Furthermore, the Cabinet agreed to apply to become a Responsible Body for Biodiversity Net Gain (BNG) and delegated authority to the Chief Planning Officer to submit the application to DEFRA. This move is intended to secure local investment in enhancing Harrow's natural environment.

Finally, the Cabinet approved the amended Social Housing Allocation Scheme, aiming to improve fairness and transparency in allocating social housing. This includes streamlining priority bands and increasing the use of direct offers. A temporary suspension of the housing register was also approved, contingent on the completion of the Locata system migration.