The Council of Lewisham will convene on Wednesday, 4 March 2026, to discuss the Council Budget for the 2026/27 financial year. The meeting agenda also includes proposals for temporary changes to polling places for the May 2026 elections and the delegation of authority to the Returning Officer for future temporary amendments.

Council Budget 2026/27

The most significant item scheduled for discussion is the Council Budget for 2026/27. The report pack details the comprehensive financial position of the Council, outlining the proposed budget for the upcoming year. This includes recommendations for setting the Council Tax, housing rents, and the Capital Programme for the next four years, alongside the Council's Treasury Management Strategy for 2026/27.

The report details revenue budget reduction proposals necessary to unwind the 2025/26 use of reserves and to set the budget for 2026/27. It also covers the allocation of budget growth to address inflation pressures and service overspending, as well as the steps required to meet the budget requirement for 2026/27 and future years as part of the Medium-Term Financial Strategy.

Key areas within the budget report include:

General Fund Revenue Budget and Council Tax

The report outlines the General Fund Revenue Budget for 2026/27, which is projected to be £425.799m. This is to be funded by the Fair Funding Allocation, forecast Council Tax receipts (including an assumed increase of 4.99%), Recovery Grant, Recovery Grant Guarantee, Recovery Grant Uplift, Adjustment Support Grant, and consolidated grants within Core Spending Power. The report details proposed revenue budget reductions totalling £30.070m for 2026/27, with further reductions of £1.834m for 2027/28 and £1.520m for 2028/29 identified to ensure a balanced budget throughout the Spending Review Period.

A significant aspect of the budget discussion will be the proposed Council Tax increase. The report recommends agreeing to a 4.99% increase in Lewisham's Council Tax element for 2026/27. This comprises a 2.99% increase in the core Council Tax, as confirmed in the final Local Government Finance Settlement, and a 2.00% increase for the Adult Social Care precept. This would result in a Band D equivalent Council Tax level of £1,726.82 for Lewisham's services and £2,237.33 overall. The report also notes that the Greater London Authority (GLA) precept for 2026/27 is expected to increase by £20.13 (4.10%) from £490.38 to £510.51.

The report also addresses the Collection Fund deficit, estimated at £1.758m in respect of Council Tax for the years to 2025/26. This deficit is shared with the GLA, with £1.354m apportioned to Lewisham Council. The Council Tax Reduction Scheme (CTRS) will remain unchanged for 2026/27, meaning eligible working-age claimants will continue to contribute a minimum of 25% towards their council tax liability.

Dedicated Schools Grant (DSG) and Pupil Premium

The report details the provisional gross Dedicated Schools Grant (DSG) allocation for 2026/27, which is £418.82m, a 5.8% increase. This includes £63.26m for the Early Years Block, which remains provisional. The Schools Block is set to receive a net increase of £6.47m (2.5%), with £6.51m relating to existing teachers' pay grants. The High Needs Block is projected to see a net increase of £5.10m (6.1%), supporting young people with Special Educational Needs (SEN). The report also notes government support for local authorities with DSG deficits as they transition to a reformed SEND system, with Lewisham eligible for a High Needs Stability Grant covering 90% of its High Needs-related DSG deficit.

Housing Revenue Account (HRA)

A proposed rent increase of 4.80% is outlined for dwelling rents and hostels, an average increase of £5.95 per week for dwelling rents. The report also details proposed changes to service charges on the same basis. The annual expenditure for the Housing Revenue Account (HRA) in 2026/27 is projected to be £275.71m, including the capital and new build programme. The report confirms that rent convergence, bringing actual rent levels up to formula rent levels, will not be permitted until 1 April 2027, meaning rent increases for 2026/27 will equate to CPI+1% only.

Treasury Management Strategy

The report updates the Council's Treasury Management Strategy for both borrowing and investments, proposing a prudent approach with levels of risk consistent with the previous year. Officers are continuing to explore alternative investment options and debt restructuring opportunities to reduce cashflow and balance sheet risk, and to best fund capital plans.

Capital Programme

The proposed Capital Programme for both the General Fund and HRA for 2026/27 to 2029/30 is £539.25m, with £109.96m allocated to the General Fund and £429.30m to the HRA. Of this programme, £213.61m is allocated for 2026/27, with £76.20m for the General Fund and £137.41m for the HRA.

Climate Budget 2026/27 – 2028/29

The Council is publishing its third annual Climate Budget, appended to the report. This budget outlines the Council's carbon emissions for the period 2018/19 – 2023/24, noting a reduction of over 25% in corporate emissions during this time. The estimated cost for the full decarbonisation of corporate and Council housing assets is approximately £743m, with a projected three-year budget of £21m for the period 2026/27 – 2028/29.

Temporary Changes to Polling Places for May 2026

The Council is being asked to approve temporary changes to polling places in three polling districts: EHG2 (Hither Green), EBE2 (Bellingham), and WSY3 (Sydenham) for the May 2026 elections. These changes are necessary due to the unavailability or unsuitability of the current designated venues. Alternative venues have been identified and assessed for their suitability in line with statutory requirements and equality considerations. The report also recommends delegating authority to the Returning Officer to make urgent temporary amendments to polling places if unforeseen issues arise before the elections.

Declaration of Interests

Members of the Council are asked to declare any interests they may have on any agenda item. The report pack includes details on the types of personal interests that need to be declared, including disclosable pecuniary interests, other registerable interests, and non-registerable interests. Failure to declare a disclosable pecuniary interest can lead to prosecution.

The meeting will also address apologies for absence and the confirmation of minutes from the previous Council meeting.