Here is a summary of the meeting scheduled to be held by Hammersmith and Fulham Council's cabinet on 8 December 2025. The cabinet is expected to discuss the council's revenue budget, capital programme, and treasury management strategy. They will also note the key decisions list.

Revenue Budget Review

The cabinet is scheduled to review the council's revenue budget for 2025/26, six months into the financial year. A report included in the Public Reports Pack pack will provide an overview of the council's financial performance, highlighting areas of overspend and underspend. The report notes that the council's corporate plan for 2023-26 sets out its strategy for delivering on its ambitions and vision to transform its services and spend and invest money to help protect high quality essential services for its residents. The report also notes that the estimated financial position incorporates known and emerging budget pressures and potential risks.

The report will present the financial performance review at Month 6 (September 2025), following the previous update provided at Month 2 (May 2025). The outcomes of this review continue to reflect the challenging macro-economic conditions and are based on a pragmatic assessment of the council's financial performance. The estimated financial position incorporates known and emerging budget pressures and potential risks. The report indicates a forecast overall General Fund overspend of £2.160m, which is 1% of the council's net budget. This figure takes into account mitigations and prior year Collection Fund income. The report states that mitigations and action plans are being developed to reduce this forecast.

The report also notes that the budget for 2025/26 included £12.3m of investment to meet demographic/legislative pressures and further funding for inflationary pay/price changes. Like many local authorities, Hammersmith and Fulham is experiencing pressures across adult social care, temporary accommodation, and children's services. These pressures are due to a combination of increasing complexity and acuity of need for those in care, an ageing population, lack of supply of suitable accommodation and the impact of high interest rates and above target inflation. The council aims to remain financially resilient by retaining a good level of balances and reserves.

The report also covers the Housing Revenue Account (HRA). A balanced HRA Budget was set for 2025/26 (without the use of balances). The service continues to resolve prior year service issues, and a prudent approach has been adopted in the forecasts for 2025/26. An in-year pressure of £2.122m is forecast (mainly the residual backlog of disrepair claims/works and decanting costs whilst repairs are completed). A number of mitigations are being implemented to manage this projected pressure.

The report pack includes tables that break down the forecast overspend by directorate and expenditure type. The People Directorate, which includes adult social care, children's and education, and public health, is forecasting the largest overspend, with a variance of £9.242m. The Place Directorate is forecasting an overspend of £4.294m, while Housing Solutions is forecasting an overspend of £3.051m. Finance and Corporate Services is forecasting an underspend of £0.227m.

The report also provides details of savings targets and progress on delivering the 2025/26 agreed budget savings. Potential service mitigations of £4.7m have been identified. The report also notes that the council has a statutory duty to arrange for the proper administration of its financial affairs and a fiduciary duty to taxpayers with regards to its use of and accounting for public monies.

Capital Programme Monitor and Budget Variations

The cabinet will also discuss the council's capital programme, which includes significant investment in the borough's infrastructure. According to a report in the Public Reports Pack, the 2025/26 capital programme is forecast to spend £270.8m as at quarter two. Some major areas of spend with the 2025/26 budget is:

• £59.7m completing Housing and Regeneration Projects
• £38.5m on refurbishing the Hammersmith Town Hall;
• £13.4m on Fire Safety programmes
• £12.2m on Planned Maintenance schemes;
• £10.2m on bringing void housing units back into service.
• £8.9m on the Acquisition of Affordable Housing units;

The report notes that all capital programmes are complex and involve considerable local community engagement, procurement, and planning considerations. The report also details the forecast capital programme for the financial year 2025/26, including the financing of the programme for the year, and future years. The report notes that work is also continuing to complete the Civic Campus development that will re-open the iconic town hall to the public, which will rejuvenate and regenerate an important part of the Borough, providing a vibrant entertainment, arts, business, education, and social destination featuring world-class architecture.

The report includes a recommendation to note the overall forecast of £270.9m for 2025/26 capital expenditure, which is a net decrease of 9.8m in comparison to the revised budget of £280.731m at Q1 2025/26. The report also recommends approving a total additional investment of £34.5m across the revised four-year programme, including new additional borrowing. The report notes that any approved additions to the capital programme which are funded from borrowing will increase the council's Capital Financing Requirement (CFR) and will need to be considered alongside the council's revenue budget and its medium term financial strategy to ensure its financial sustainability.

The report also sets out the ongoing economic uncertainty, including the impact of high interest rates and changes in the domestic property market, and identifies actions which will, in part, mitigate this risk. The report notes that the council needs to carefully consider its VAT partial exemption calculation and the risk of breaching the partial exemption threshold, which would likely cost the council over £3m per year whilst in breach.

Treasury Management Strategy

The cabinet is also scheduled to discuss the council's treasury management strategy. According to a report included in the Public Reports Pack, this report provides an update on the implementation of the 2025/26 Treasury Management Strategy, approved by Full Council on 26 February 2025, and presents the Treasury Management Strategy 2025/26 mid year review. Treasury management comprises the management of the council's cash balances, funding for the council's capital programme and ensuring security of capital and liquidity.

The report covers a review of the council's investment portfolio for 2025/26, a review of the council's borrowing strategy for 2025/26, a review of compliance with Treasury and Prudential Limits for the first six months of 2025/26, and an economic update for the first part of the 2025/26 financial year. The report notes that during the first six months of 2025/26, cash balances were £44.2m at 31 March 2025 and £44.8m at 30 September 2025. These funds were invested in Money Market Funds (MMF) with an average yield of 4.09%. The average rate fell from 4.75% at 31 March 2025 following a 0.50% decrease in the Bank Rate.

The report also notes that the council made principal repayments on its existing debt (£3.2m in total) and took out £85.0m of borrowing from the Public Works Loan Board (PWLB). Therefore, debt has increased from £288.3m to £370.1m, with the weighted average interest rate also increasing from 3.75% to 3.86%. The report also notes that the council approved the Green Investment Fund of up to £5m at the end of 2023/24 and to date £3.3m (or 95%) has been raised in 4 separate tranche issues in 2025/26. A total of 1,854 individuals have invested in this 5-year bond and the resources will be spent on local green themed projects. A further £1.7m is expected to be raised in the next 12 months.

The report includes a recommendation for the cabinet to note the Treasury Management Strategy 2025/26 mid-year review, the forecast capital financing requirement (CFR) for the General Fund and the Housing Revenue Account (HRA), and the current split between external and internal borrowing.

Key Decisions List

The cabinet will note the Key Decisions List, which provides notice of key decisions that the cabinet, cabinet members, or chief officers intend to consider in the future. Key decisions are those that are likely to result in expenditure or savings greater than £300,000, affect communities living or working in an area comprising two or more wards in the borough, or affect the budget and policy framework set by the council. The key decisions list includes a number of upcoming decisions related to procurement strategies, contract awards, and policy updates.