The Public Cabinet meeting of Bexley Council, scheduled for Monday, 23 February 2026, was set to discuss the council's financial position and future strategies. Key agenda items included monitoring the budget for the 2025/26 financial year up to December, reviewing the Medium Term Financial Strategy for 2026/27 to 2029/30, and the adoption of the Bexley Economic Growth Strategy. The meeting was also scheduled to consider the council's capital programme and treasury management strategies for the upcoming financial year.

Budget Monitoring 2025/26 (Period 9)

The meeting was scheduled to receive an update on the council's revenue and capital budget monitoring as of December 2025. The report indicated a forecast revenue budget overspend of £1.762 million against a net budget of £253.425 million. This represented a favourable movement of £0.176 million since the previous month. For the capital programme, the forecast expenditure as at the end of December 2025 was £47.028 million against a budget of £48.778 million. The report included proposed decisions to approve the budget monitoring position, as well as any slippage and accelerated spend on the capital programme.

Medium Term Financial Strategy (MTFS) 2026/27 to 2029/30

A significant portion of the meeting was dedicated to the Medium Term Financial Strategy, which outlines the council's financial plans for the period 2026/27 to 2029/30. The strategy aimed to address financial challenges through a multi-faceted approach, including savings identification, transformation projects under the Future Bexley programme, and detailed service reviews. The report proposed a balanced budget for 2026/27, with a projected budget gap of £17.815 million by 2029/30. Key assumptions included a 4.99% increase in Council Tax for 2026/27 onwards, and a 2.00% increase for the Adult Social Care precept. The strategy also detailed planned capital expenditure, funding sources, and proposed decisions on the revised Capital Programme, capital additions, fees and charges, and the Council Tax requirement for 2026/27.

The report highlighted key financial risks, including contract inflation, pay inflation, increasing demand and complexity of need in social care and SEN transport, potential budget reductions from Integrated Care Boards, and the impact of the cost of living on residents and businesses. It also outlined proposed policy and legislative changes that could have significant financial impacts, such as the Children's Wellbeing Bill and changes to the Business Rates Retention System.

The strategy proposed an increase in the contingency budget to £5.000 million for 2026/27 only, to mitigate potential pressures. It also detailed the Dedicated Schools Grant allocation for 2026/27, noting pressures within the High Needs Block and the ongoing management of the deficit through a Safety Valve agreement.

The report included proposed decisions for Cabinet to recommend to Full Council, covering the General Fund Budget, Capital Programme, Treasury Management Strategy, and Fees and Charges. It also noted the precept from the Greater London Authority (GLA).

Adoption of the Bexley Economic Growth Strategy

The meeting was scheduled to consider the adoption of the Bexley Economic Growth Strategy. The current strategy dated from 2017, and a new document was considered timely, focusing on delivering good growth that is inclusive, economically resilient, and aligned with the Council's long-term objectives. A draft strategy was developed in Autumn 2025 and underwent public consultation between mid-December 2025 and mid-January 2026. The report detailed the consultation process, a summary of the results, and the Council's responses and proposed amendments to the strategy. The associated Cultural Strategy was also presented for endorsement.

The Economic Growth Strategy outlined a vision of Bexley: Ready for tomorrow, growing for a better future, supported by ten strategic outcomes. These outcomes aimed to increase inward investment, meet housing targets, build a resilient economy, improve transport, deliver robust digital networks, safeguard social and community infrastructure, enhance health and wellbeing, improve education and employment pathways, foster civic participation, and promote leadership in the green economy. The strategy was underpinned by six guiding principles: directing Council investment to support good growth, fostering a thriving investment climate, working transparently with communities, strengthening partnerships, promoting prevention and early intervention, and enhancing connectivity.

The report also included an analysis of consultation responses, highlighting support for the strategy's approach, but also requests for defined timescales, metrics for success, and consideration of resource implications. Specific feedback was received regarding transport improvements, housing development, and environmental sustainability. The Council's responses and proposed amendments were detailed, including the publication of an action plan with priority projects, timescales, costs, benefits, and funding arrangements. The Cultural Strategy was presented as a key initial output of the Economic Growth Strategy.

The report also outlined legal implications, noting the Council's general power of competence and the need to consider the Public Services (Social Value) Act 2012 and the Procurement Act 2023. It also highlighted the Council's duty to set a balanced budget and maintain adequate reserves, as well as the Chief Finance Officer's responsibilities under Section 151 of the Local Government Act 1972 and Section 114 powers. The report also included an Equality Impact Assessment for the Cultural Strategy, noting potential positive impacts for all protected groups.

The meeting was also scheduled to consider the Capital Programme for 2026/27 to 2029/30, including existing approved schemes and new capital bids. The report detailed the proposed capital expenditure and its funding sources, such as grants, Section 106 payments, CIL, capital receipts, and borrowing. The Treasury Management Strategy for 2026/27 was also to be discussed, outlining policies on borrowing, investments, creditworthiness, and the use of external service providers. The report included prudential indicators for capital finance and treasury management, as well as the Council's borrowing position and investment strategy. Finally, the Minimum Revenue Provision (MRP) Policy Statement for 2026/27 and the Flexible Use of Capital Receipts Strategy were to be presented.