The Cabinet of Wandsworth Council met on Wednesday 29 July 2026 to discuss a range of financial and policy matters. Key decisions included the adoption of a Private Rented Sector Offer Policy to help address homelessness, the allocation of funds from the new Crisis and Resilience Fund, and approval of budget variations for the upcoming financial year.

Housing Management Annual Complaints Report

The Cabinet noted the new complaint categories for the Housing Management Service, as set out in the report. These changes aim to provide greater clarity and support improved performance analysis, aligning with Housing Ombudsman reporting requirements. The report detailed that in 2025-26, the service handled 759 complaints, with 77% of Stage 1 complaints and 85% of Stage 2 complaints resolved on time. The Housing Ombudsman Service (HOS) noted a maladministration rate of 65% for Wandsworth, a decrease from the previous year. The report also highlighted ongoing work to address issues identified in a Section 49 investigation, including improvements to repairs management, communication, and complaint handling.

Private Rented Sector Offer Policy Allocation Scheme

The Cabinet agreed to adopt the Private Rented Sector Offer Policy, to be implemented with immediate effect. This policy provides a framework for using private rented accommodation to discharge the Council's main housing duty to homeless households, where statutory requirements are met and the accommodation is deemed suitable and affordable. Councillor Matthew Corner, Cabinet Member for Housing, explained that this policy is part of a wider homelessness transformation programme aimed at reducing reliance on temporary accommodation, which currently costs the Council nearly £40 million per year. The policy allows for offers to be made both within and outside the borough, with suitability assessments considering factors such as affordability, size, health needs, and access to schools and services. It is estimated that adopting this policy could lead to a net annual saving of £650,000 in the first year by reducing temporary accommodation costs.

Allocation of the Crisis Resilience Fund and Support for Low-income Households

The Cabinet approved the return of £6.2 million from the Cost of Living Reserve to the Financial Resilience Reserve, formally closing the Cost of Living Reserve. They also approved a revenue budget variation of £2,084,500 for 2026/27 to fund projects previously linked to the Cost of Living Reserve. The Cabinet noted the final spend on the seventh tranche of the Household Support Fund and approved the allocations for the first year of the new Crisis and Resilience Fund (CRF).

The CRF, which replaces the Household Support Fund and Discretionary Housing Payments, will operate for three years and represents a strategic shift towards a more preventative, resilience-based model. While the overall grant funding is a 16.7% decrease compared to previous arrangements, it will support activity across four strands: Crisis Payments, Housing Payments, Resilience Services, and Community Coordination.

Key allocations for 2026/27 include £1,030,000 for the Crisis Payment Scheme, £881,000 for Housing Payments, and £1,573,000 for Resilience Services. Notably, funding for holiday food vouchers for children eligible for free school meals will cease, with CRF funds instead being used to bolster the Holiday Activities and Food Programme (£200,000), extend Magic Breakfast holiday packs (£77,000), and support Family Hub food pantries (£90,000). Targeted support for children in need, looked after children, and care leavers will also receive £200,000.

Resilience services include funding for Financial Inclusion Officers (£335,000), Financial Resilience Navigators (£127,000), energy efficiency interventions (£100,000), the Wandsworth Foodbank Advice Service (£80,000), additional capacity for Citizens Advice Wandsworth (£226,000), debt advice services (£82,000), and employment support (£60,000).

The Cabinet also noted proposals for the development of a borough anti-poverty strategy, with consultations planned for autumn 2026.

Council's Financial Results for the Year 2025/26

The Cabinet noted the Council's financial outturn for the year 2025/26. The General Fund revenue budgets showed an overall overspend of £9.8 million, largely due to increased demand in services such as adult social care and homelessness, and the closure of Bradstow School. This overspend has resulted in a net drawing of £32.4 million from earmarked reserves. The Housing Revenue Account (HRA) also reported an overspend, primarily due to increased costs for repairs, maintenance, and building safety compliance. The Dedicated Schools Budget (DSB) had an in-year overspend of £11.3 million, mainly driven by increased demand for Education, Health and Care Plans (EHCPs) and higher costs for independent school placements.

The report highlighted that the Council's medium-term financial position has significantly worsened due to a loss of government funding following the Fair Funding Review 2.0. Without intervention, balancing the budget would require a substantial council tax increase. The administration has launched a Spending Review and is seeking to reduce borrowing. The Cabinet approved positive General Fund revenue budget variations of £3,521,100 and HRA budget variations of £4,499,400 for 2026/27 only, as detailed in Appendix A. The report also noted that reserve balances at the end of 2025/26 stood at £161.5 million, which, while significant, is not sufficient to meet the forecast budget gap on an ongoing basis.

Update on the Spending Review

The Cabinet noted the progress of the Spending Review, which aims to address the Council's financial challenges, including increased demand, reduced government funding, rising debt, and depleting reserves. The review is examining all service areas to identify efficiencies and savings. Key points noted included:

• Commitments to improving street cleanliness through enhanced cleaning and enforcement.
• Investment in police officers funded from the Neighbourhood Community Infrastructure Levy (NCIL).
• The disbandment of the Leader's Office team to reduce costs and duplication.
• Proposals for consolidating office accommodation onto the Town Hall campus.
• A full review of the capital programme to reduce borrowing.
• The ringfencing of Access for All, Cost of Living, and Borough of Sanctuary funding pots, with remaining balances returned to reserves.
• The removal of specific schemes from the Council's new build programme.
• The discontinuation of the youth bus service.
• The declaration of Bradstow School land and buildings as surplus to requirements for disposal.

During the discussion, Councillor Hogg, Leader of the Opposition, raised concerns about the perceived austerity approach, the lack of public consultation, and the impact of some proposed cuts. Councillor Aled Richards-Jones, Leader of the Council, responded by outlining the significant financial challenges facing the Council and the necessity of these measures, while also emphasising a commitment to public engagement and a more sustainable financial future. The Cabinet also discussed the repurposing of the youth bus service, with assurances that the services provided would be integrated into family hubs and other youth services.