The Cabinet of Merton Council met on Monday 19 January 2026, approving significant plans for affordable housing acquisition, town centre regeneration, and a new playing pitch strategy. The meeting also saw the endorsement of recommendations for the Merton Legacy Fund and the initial stages of the 2026/27 budget setting process.

Acquisition of Homes for Affordable Housing

The Cabinet approved the forward purchase of 146 homes at the former Mitcham Gasworks site from St William (Berkeley Homes) for use as affordable housing. This acquisition is a key measure to address the borough's housing shortage and reduce the cost of temporary accommodation, building on the council's previous response to the housing crisis. The purchase is contingent on contract finalisation and grant funding from the Greater London Authority (GLA). Contract exchange is anticipated in February 2026, with construction beginning before 31 March 2026 and phased completions expected by 2030. The council will recommend the allocation of £60 million to the capital programme for this project.

Morden Town Centre Regeneration

A significant step was taken towards the regeneration of Morden Town Centre with the approval to begin a procurement process for a developer partner. The council will also commit a capital contribution to the project's funding. Authority has been delegated to the Executive Director for Housing and Sustainable Development, in consultation with other directors, to finalise procurement documents and processes. This decision follows a pre-market engagement exercise to shape the regeneration plan. Cabinet will consider a further report on the procurement results and any proposed contract with a developer. The council's capital programme will be augmented by £30 million for Morden Town Centre, with a recommendation for ratification by Full Council. The council will also contribute its land to the project, subject to obtaining the best consideration reasonably obtainable.

Merton Legacy Fund Update

The Cabinet approved three project option lists, shortlisted by the Merton Legacy Advisory Board, to be put forward for a public vote. These projects are to be funded from an allocation of £15 million from Capital Receipts for the Merton Legacy Fund, aimed at creating lasting legacies within Merton. The Advisory Board, comprising individuals from various sectors and community interests, has been instrumental in reviewing and recommending proposals.

Playing Pitch and Facility Strategy

The Cabinet approved and adopted the Playing Pitch Strategy 2026–2038. This strategy highlights the need for increased pitch and facility provision and recommends investment in a new sports hall at Morden Leisure Centre.

Budget 2026/27 and MTFS 2026-30

The Cabinet reviewed progress on setting a balanced budget for 2026/27 and the Medium Term Financial Strategy (MTFS) for 2026-30. Key decisions included agreeing the proposed Council Tax Base for 2026/27 and considering draft savings proposals for the period 2026/27 to 2029/30. These savings proposals, along with emerging Equalities Impact Assessments and the draft Capital Programme 2026-2030, will be referred to Overview and Scrutiny panels and committees in January and February 2026 for their consideration and comment.

Period 8 Financial Monitoring Report

The Cabinet noted the financial reporting data for period 8 (November), which indicated a forecast revenue overspend of £1.926 million when corporate and funding items were included. This represents an improvement of £2.212 million since period 6. The Cabinet also noted the contents of appendices detailing proposed adjustments to the capital programme and approved these adjustments.