The Budget and Performance Committee met to discuss the 2026-27 Greater London Authority Group Budget, with a significant focus on affordable housing and the operational and financial strategies of the Metropolitan Police Service (MPS) and the London Fire Brigade (LFB). Key decisions included noting the Chairman's delegated authority to agree a letter to the Mayor regarding the LFB budget and confirming minutes from previous meetings.

The 2026-27 Greater London Authority Group Budget – Affordable Housing

The committee heard from a panel of guests from the Greater London Authority (GLA) regarding the challenges and progress in delivering affordable housing in London. Deputy Mayor for Housing and Residential Development, Tom Copley, highlighted the significant progress made over the past year, including securing nearly £12 billion for London from the £39 billion 10-year social and affordable homes programme. He also mentioned the City Hall Developer Investment Fund (£322 million) and the vital DLR extension to Thamesmead, which is expected to unlock 30,000 homes.

However, the discussion also underscored the persistent challenges of viability and the high cost of building in London. Assembly Member Krupesh Hirani questioned the effectiveness of the Affordable Homes Programme 2021-26, noting a five-fold increase in subsidy per unit compared to the previous programme, despite a lower overall quantum of homes being delivered. Concerns were raised about the projected delivery of only 3.4% to 6% of affordable homes from the current Affordable Homes Programme funding, against the Mayor's target of 88,000 homes per year.

The committee also discussed the Mayor's target of 88,000 homes per year, with Deputy Mayor Copley stating that this target cannot be achieved without building on the Green Belt. Discussions also touched upon the development of key worker housing, with plans to launch a key worker living rent tenure.

London Fire Brigade (LFB) Budget

The committee scrutinised the 2026-27 budget for the London Fire Brigade, hearing from Deputy Mayor for Planning, Regeneration and the Fire Service, Jules Pipe CBE, London Fire Commissioner Jonathan Smith, and Director of Corporate Services at the LFB, Mostaque Ahmed. A significant concern was the £12 million budget gap for the upcoming year, which the LFB plans to address through efficiencies within its non-frontline budget. The committee heard that no fire stations or firefighter numbers would be cut, but acknowledged the increasing difficulty in finding savings without impacting essential services like training.

The budget submission highlighted the evolving risk landscape, including an increase in e-scooter and e-bike fires, and the need for investment in operational training and equipment, such as all-terrain vehicles for wildfires. The LFB's commitment to tackling institutional misogyny and racism was also discussed, with Commissioner Smith explaining a shift from a programmatic approach to embedding cultural improvements into business-as-usual activities.

Concerns were raised about the LFB's reliance on reserves, with the general reserve projected to fall to £31.3 million by 2027. The committee also discussed the significant increase in capital financing costs, largely due to borrowing for the new LFB headquarters at 8 Albert Embankment, and the lack of central government capital grant funding. The LFB's commitment to achieving net zero by 2030 was acknowledged as an unfunded target, with significant financial gaps identified, particularly concerning the electrification of its fleet.

Metropolitan Police Service (MPS) and Mayor's Office for Policing and Crime (MOPAC) Budget

The committee examined the 2026-27 budget for the MPS and MOPAC, hearing from Deputy Mayor for Policing and Crime, Kaya Comer-Schwartz, CFO of MOPAC, Amana Humayun, and CFO of the MPS, Dan Worsley. A key point of discussion was the closure of a significant budget gap, achieved through a combination of efficiencies, managing the balance sheet, and an assumption of increased National and International Capital City (NICC) grant funding from the Home Office.

Concerns were raised about the net reduction in overall police officer numbers, despite the Mayor's manifesto commitment to increase them. Deputy Mayor Comer-Schwartz explained that this was due to natural attrition and a strategic redeployment of officers from back-office roles to neighbourhood policing. The committee also questioned the transparency around the closure of front counters and the associated savings.

The budget includes £63 million for the New Met for London 2 (NMfL 2) programme, focusing on crime fighting, standards, and trust. Discussions also covered the funding for protest policing, with the MPS noting the unique challenges in London compared to other cities. The committee heard that the MPS is lobbying for increased NICC funding and a multi-year settlement to ensure financial stability.

The Estate Strategy, which is expected to be published soon, was also discussed, with questions about the disposal of surplus buildings and the associated maintenance costs. The committee was assured that the budget aligns with the draft Estate Strategy, which includes decarbonising the estate and electrifying the fleet.

Violence Reduction Unit (VRU) Funding

Lib Peck, Director of the Violence Reduction Unit (VRU), provided an update on the VRU's funding for the next financial year. The total VRU funding for 2026/27 is forecast at £35.1 million, comprising £9.4 million from the Home Office and £25.4 million from the Mayor. This represents a decrease from the previous year's gross expenditure of £37.4 million, primarily due to the conclusion of two-year programmes funded by the Mayor. The VRU is continuing its work on initiatives such as MyEnds, education projects, and mentoring schemes, and is also taking over the violence and exploitation contract from MOPAC.

Other Matters

The committee also noted actions taken under delegated authority, including the Chairman's agreement to a letter to the Mayor of London regarding the LFB budget. The work programme and date of the next meeting were also confirmed.