The Kingston upon Thames Council convened for a Budget Council meeting on Thursday, 26 February 2026, to discuss and potentially approve the financial strategy and detailed budget for the upcoming years. Key items on the agenda included the Medium Term Financial Strategy for 2026-2030 and the detailed budget for 2026/27, alongside the Capital Strategy and Treasury Strategy. The meeting also scheduled discussions on the Statement of Licensing Policy, a determination of a complaint against Councillor Kamala Kugan, and a review of political proportionality on Council bodies.

Medium Term Financial Strategy and Detailed Budget 2026/27

A significant portion of the meeting was dedicated to the Medium Term Financial Strategy (MTFS) for 2026-2030 and the detailed budget for 2026/27. The Corporate and Resources Committee had previously considered these reports, and their recommendations were presented to the Council. The agenda outlined several recommendations for the Council to consider, including the approval of budget proposals and Council Tax for 2026/27, authorising officers to implement the agreed budget and service charges, and noting the Section 151 Officer's comments on the robustness of estimates and reserves.

The Council was asked to calculate the statutory Council Tax for 2026/27, approve the Capital Strategy, and the Treasury Strategy, which encompasses the Annual Investment Strategy, prudential indicators, and the Minimum Revenue Provision (MRP) policy. Additionally, the approval of the pay policy for 2026/27 was scheduled.

A substantial part of the budget discussion focused on the Schools Budget for 2026/27, with specific proposals for the Central School Services Block, Early Years Block, High Needs Block, and the Schools Funding Formula, including a Minimum Funding Guarantee of +0.0% per pupil. The Housing Revenue Account (HRA) budget for 2025-26 and indicative revenue budgets for 2025-26 to 2027-28 were also up for approval, alongside the full HRA Capital Programme.

The report highlighted the challenging financial context, including national economic pressures, increasing demand for statutory services like social care, and insufficient funding. It detailed the Council's core spending power, the impact of the Fair Funding Review, and the assumed Council Tax increases. The report also addressed the significant budgetary pressures from Community Housing, Adult Social Care, and Children's Social Care, forecasting a substantial overspend for 2025/26.

The S151 Officer's statement, as required by the Local Government Act 2003, provided commentary on the robustness of estimates and the adequacy of reserves. This statement acknowledged the Council's strong track record in financial management but also highlighted significant financial challenges, particularly concerning the Dedicated Schools Grant (DSG) deficit and the potential impact of SEND reforms. The S151 Officer advised that while the current level of reserves was sufficient for 2026/27, they would need close review and scrutiny. The long-term viability of the budget was noted as dependent on the successful delivery of savings programmes and a favourable national resolution to the DSG deficit.

The Capital Strategy, detailed in Annex 11, outlined a capital programme for 2026/27 to 2029/30 totalling £248 million, comprising £142.93 million for the General Fund and £105.07 million for the HRA. This programme prioritises investment in housing, including the Cambridge Road Estate regeneration, a new community leisure centre, decarbonisation schemes, and a new Post-16 Campus for SEND young people. The Treasury Strategy, detailed in Annex 12, covered the annual investment strategy, prudential indicators, and the MRP policy, with proposed changes to the MRP policy from 2026/27. The Pay Policy Statement for 2026/27 was also presented.

Statement of Licensing Policy under Licensing Act 2003

The Licensing Committee had met on 10 February 2026 to consider the outcome of a consultation on the draft revised Statement of Licensing Policy under the Licensing Act 2003. The committee recommended that the Council approve the revised policy for 2026-2031. The policy aims to promote the four licensing objectives: the prevention of crime and disorder, public safety, the prevention of public nuisance, and the protection of children from harm. It also addresses emerging issues such as the impact of delivery services, noise from external areas, and the absence of a formal Cumulative Impact Assessment for Kingston Town Centre. The policy sets out guideline hours for different types of licensed premises and provides advice on making applications and promoting licensing objectives.

Determination of Complaint against Councillor Kamala Kugan

The Standards Sub-committee had met on 9 February 2026 and made a determination on a complaint against Councillor Kamala Kugan. The outcome was formally reported to the Council, including findings that Councillor Kugan failed to comply with the Code of Conduct, a formal censure was recommended, and Councillor Kugan was required to issue an apology. The Sub-committee also recommended that Councillor Kugan be removed from all Council committees, with a potential concession for her to remain on the New and Old Malden Neighbourhood Committee.

Review of Political Proportionality

The Council was asked to review the political proportionality of Council bodies following a change in the composition of the Kingston Independent Residents Group. The report detailed the current political balance of the Council and proposed allocations of seats on various committees and panels to comply with political balance regulations. It was noted that the ungrouped member's seat allocation was not being changed, and the arrangement for the Scrutiny Panel, where proportionality rules had previously been disapplied, would remain the same.

Appointments to Outside Bodies and Committees

The Council was asked to note and ratify changes to appointments to Outside Bodies and to Committees, Panels, or other bodies, as nominated by the relevant political groups. These included appointments to the Kingston and Richmond NHS Foundation Trust, the Kingston Theatre Trust, the Health Overview and Scrutiny Panel, the People Committee, and the Licensing Committee.

Retention of the Committee System Governance Arrangements

The Council considered a report regarding the retention of the committee system model of governance. In response to the English Devolution and Community Empowerment Bill, which would otherwise mandate a transition to a Leader and Cabinet model, the Council was recommended to pass a resolution to continue operating a committee system, potentially securing a five-year protection period for the current system.

Urgent Items authorised by the Mayor

There were no urgent items authorised by the Mayor for consideration.

The meeting also included the approval of the Timetable of Meetings for 2026/27 and responses to Member Questions submitted for written answers. These questions covered a range of topics including on-street car parking charges, the operation of yellow box junctions, planning enforcement, the construction of Kingston's new leisure centre, the provision of temporary accommodation, the Local Plan, the Acre Road housing development, and the operation of the SHEU survey.