The Cabinet of Merton Council met on Monday 15 December 2025, approving recommendations for the Treasury Management Strategy, the Council Tax Support scheme for 2026/27, and the Violence Against Women and Girls (VAWG) Strategy 2026-29. The Cabinet also reviewed and agreed proposed changes to fees and charges for 2026/27.

Violence Against Women and Girls (VAWG) Strategy 2026-29

Cabinet approved Merton's new Violence Against Women and Girls (VAWG) Strategy for 2026-29. This strategy aims to tackle VAWG through five key priorities: changing attitudes and behaviours, improving the safety of women and girls, early identification and help, supporting victims and their children, and holding perpetrators to account. The strategy has been developed in consultation with survivors, professionals, residents, and stakeholders, and includes a robust action plan with measurable steps. Key actions include preventative work in schools, focused support for minoritised groups, and improving referral pathways. The strategy acknowledges the disproportionate impact of VAWG on women and girls but also recognises that men and boys can be victims of domestic abuse, and services will support them. The strategy aligns with national and regional initiatives, including the Mayor of London's VAWG Strategy and the Domestic Abuse Act 2021, which places duties on local authorities to provide safe accommodation and support. Merton Council is also White Ribbon Accredited, demonstrating its commitment to ending male violence against women.

Council Tax Support Scheme 2026-27

Cabinet agreed to Option 1 for updating the Council Tax Support (CTS) scheme for 2026/27, recommending it to the Council for adoption. This option aims to maintain low council tax charges for those on lower incomes and other vulnerable residents. The proposed update will align the local scheme for working-age residents with the government's prescribed scheme for pensioners, ensuring parity between the two groups. This approach allows for in-year changes to reflect government revisions to national welfare benefits, tax credits, and grants, ensuring residents are not worse off due to the new scheme. A formal consultation was conducted between October and November 2025, with responses indicating a preference for Option 1 due to its fairness and alignment with government legislation. The Liberal Democrats group responded positively to Option 1, suggesting improvements to accessibility and exploring income-banded schemes, while also advocating for a Benefits Boost Strategy to maximise uptake of unclaimed benefits. The Conservative group also supported Option 1. The Greater London Authority (GLA) also responded, favouring Option 1 for maintaining the mirroring arrangement and encouraging detailed analysis of households' ability to pay.

Fees and Charges Review and Approval

Cabinet noted the review of fees and charges and agreed to proposed changes for 2026/27, as outlined in Appendix 1 and Appendix 2, for executive functions. Fees and charges that are not executive functions will be agreed by Full Council, relevant committees, or delegated officers. The review's approach prioritises full cost recovery to ensure charges align with the increasing costs of service delivery. The budgeted income from sales, fees, and charges for 2025/26 is £71 million. The general principle for most services is an inflationary increase, with some charges proposed to increase above inflation where services have previously undercharged or where benchmarking indicates rates are below market levels. Statutory charges, set by legislation, will continue to align with applicable regulations. A significant portion of the fees and charges are set by statute or contractual arrangements, such as parking penalty charge notices and planning application fees, which are not subject to this annual review. The report includes a financial summary of current and projected income from sales, fees, and charges, noting that this includes fees for services where the Council does not have discretion to change the charge.

Treasury Management Strategy Mid-Year Review

Cabinet noted the update on Merton's treasury management activities for the first half of the 2025-2026 financial year. The report detailed activities and any differences from the Treasury Management Strategy approved in March 2025. Treasury management involves managing the Council's cash balances and borrowings in accordance with the approved investment strategy, as well as funding capital plans. The mid-year report highlighted the Council's treasury activities, economic and political developments influencing investments, borrowing, and investment income. The investment portfolio managed in-house reached £117 million, with externally managed investments, including government bonds and property funds, totalling £108 million. The Council has committed £10 million to the Resonance Homelessness property fund, which is expected to help reduce homelessness and generate income. Investment income is currently £9.4 million against a budget of £11 million, with the Council aiming to meet this target through careful further investing. The report also detailed changes to prudential indicators for the Capital Financing Requirement (CFR), external debt, and the operational boundary, with revised estimates showing an increase in capital expenditure and borrowing needs. The report also provided an overview of PWLB loan rate movements and interest rate forecasts from MUFG Corporate Markets, indicating a general trend for rates to fall back over the next one to two years, although upside risks remain. The Bank of England's Monetary Policy Committee meetings were also reviewed, noting interest rate cuts and differing views on the pace of future reductions due to inflation and labour market concerns.