At a recent meeting, Merton Council's cabinet addressed key issues including housing, financial monitoring, and adult learning services, and also approved an action plan responding to a planning peer challenge. The cabinet approved measures to address the housing crisis, including becoming a stock holding authority and re-opening the housing revenue account, and also approved the procurement approach for a new contract for the Merton Adult Learning Main Delivery Service. Additionally, the cabinet noted the financial reporting data for period 6, and approved the proposed actions in the Planning Peer Challenge Action Plan.

Housing Crisis Response

The cabinet approved a series of measures to address the housing crisis in Merton, with Councillor Andrew Judge, Cabinet Member for Housing & Sustainable Development, noting that good quality affordable homes are essential. These measures enable the council to become a self-deliverer of housing and a long-term stock holding authority.

Key decisions include:

• Acquisition of Property: Approval was granted for the acquisition of property for use as temporary accommodation, both within and outside the borough, subject to securing grant funding and full council making provision in the budget.
• Delegated Authority: The Executive Director of Housing & Sustainable Development was delegated authority to submit bids for funding and acquire affordable housing and temporary accommodation.
• Housing Developments: Noted that contracts will be let and work will commence on the development of 75 homes at Farm Road, Raleigh Gardens Car Park and Elm Nursery Car Park.
• Canons Place: The decision not to proceed with the development at Canons Place was noted, as additional land has become available, allowing greater optimisation of the scheme.
• Stock Holding Authority: The council determined that it should become a stock holding authority and approved a £500,000 budget for business planning in preparation for opening its Housing Revenue Account (HRA).
• Housing Delivery Business Plan: Approved the preparation of a Housing Delivery Business Plan.
• Housing Revenue Account (HRA): Approved taking necessary steps with a view to re-establishing the HRA with effect from the start of the 2027/28 financial year, subject to subsequent approval by members.

The report highlighted the increasing demand for affordable housing, with over 10,000 households on the Housing Register¹, and a significant rise in homelessness. The number of households in temporary accommodation has risen from 350 in 2023 to approximately 750 in 2025, placing significant pressure on council resources.

Planning Peer Challenge Action Plan

The cabinet agreed to the proposed actions set out in the Planning Peer Challenge Action Plan, which addresses 15 key recommendations from the national Planning Advisory Service (PAS) regarding the review of the Development Management service. The aim of the plan is to improve the Local Planning Authority (LPA) service, making it best in class .

The 15 recommendations are:

R1 – Prioritise the adoption of the Local Plan and make its implementation the focal point for a joined up and inclusive approach to place-making across the Planning Service and the rest of the council.

R2 – The Planning Service needs to create a clear strategy for delivering the Leader and Chief Executive's Vision for Merton.

R3 – Produce a Planning Service Plan that has clear and direct links to the corporate priorities and delivery of the local plan.

R4 – Review the structure of the planning service to ensure that it supports closer working relationships across the planning service.

R5 – Take a more sustainable approach to achieving improvement in Development Management.

R6 – Work through the PAS Development Management (DM) Toolkit as part of ongoing process and service improvement work.

R7 – Reduce Extensions of Time (EoTs).

R8 – Consider extending the validation outsourcing arrangement.

R9 – Committee practices and procedures should be kept under review to ensure an ongoing open and engaging experience for the public and to focus resources on the right types of development.

R10 – Update and implement the Enforcement Service Plan/Policy.

R11 - New Development.

R12 – Strategic Development

R13 - Aligning Infrastructure Planning for Sustainable Growth.

R14 – Review the effectiveness of the Statement of Community Involvement (SCI) and produce an up-to-date version.

R15 – Prioritise the implementation of the new IT system.

The Executive Director for Housing and Sustainable Development will oversee the delivery of the action plan through an officer-led Regeneration Board.

Merton Adult Learning Main Delivery Service

The cabinet approved the procurement approach for a new contract for the Main Service Provider of the Merton Adult Learning Service Delivery. The contract will be for a period of 3 years with the option for a contract extension of 2 years (1+1). The cabinet also agreed to delegate authority to award the subsequent contracts to the Executive Director for Children Lifelong Learning and Families in consultation with the Lead Member for Jobs, Skills and Education, Councillor Sally Kenny.

The main Merton Adult Learning (MAL) contract provides vocational qualifications, Wellbeing and Confidence programmes, English as a Second Language courses, Social Care Courses, GCSEs, Confidence Building and Employability courses.

Period 6 Financial Monitoring Report

The cabinet noted the financial reporting data for period 6, which showed a forecast £4.138m unfavourable variance when corporate and funding items are included. This is an improvement of £2.392m since period 3 (Quarter 1). The cabinet also noted the contents of the appendices and approved the proposed adjustments to the programme.

The report highlighted that local authorities are operating in a challenging financial climate, with Merton Council facing pressures in demand-led services such as adults and children's social care and homelessness. Temporary accommodation costs have surged, contributing to the current forecast overspend. A significant financial challenge is the Dedicated Schools Grant (DSG) High Needs budget, which has been in deficit since 2018/19.