The London Assembly will consider the Mayor of London's draft Consolidated Budget for 2026-27, which includes proposals for Transport for London, the Metropolitan Police Service, and the London Fire Brigade. The Assembly will also discuss the future of affordable housing programmes and the London Growth Plan.

Draft Consolidated Budget for 2026-27

A significant portion of the meeting is scheduled to be dedicated to the Mayor of London's draft Consolidated Budget for 2026-27. This will involve the Mayor presenting his report, followed by the London Assembly Budget and Performance Committee's response to the proposals. Assembly Members will then have the opportunity to ask the Mayor questions regarding the eight sections of the draft budget. The Assembly is under a duty to consider and approve the draft budget, with or without amendments, as part of a two-stage budget-setting process.

Response to GLA Group Budget Proposals

The London Assembly Budget and Performance Committee has prepared a response to the Mayor of London's GLA Group Budget Proposals and Precept for 2026-27. This response, detailed in a letter to the Mayor, outlines recommendations based on evidence gathered during the budget development and consultation phases. Key areas of focus include:

• GLA Mayor Budget: The committee has highlighted concerns regarding the £19 million budget gap anticipated for 2026-27 and the need for transparency in budget adjustments. They have also raised questions about the interaction between the Mayor's Universal Free School Meals programme and the new government entitlement for children on Universal Credit. The committee urges the Mayor to publish the full anticipated cost of the Oxford Street pedestrianisation project, its funding sources, and any contingencies. Furthermore, they have expressed concerns about the financial risks associated with West Ham United Football Club's sporting performance impacting the London Stadium's budget and have reiterated the need for a naming rights deal. The committee also welcomes the commitment to renovate the Crystal Palace National Sports Centre. Regarding GLA reserves, the committee recommends a review to ensure long-term balances are necessary and that future budgets clearly state the purpose and justification for each reserve. The committee also seeks clarity on the progress of the London Growth Plan, particularly regarding the creation of 150,000 jobs and the GLA's role in achieving this, as well as the cost differential between pursuing net zero by 2030 versus 2050.

• MOPAC Budget: The committee has noted the Metropolitan Police Service's (MPS) approach to operating within a balanced budget and welcomes the inclusion of staff and police officer numbers in the budget. However, they express disappointment at the absence of explicit police officer numbers in the consultation budget and recommend that the MOPAC budget document clearly state the current resource need for police officers and staff. The committee also addresses the policing of major events, supporting efforts to reduce costs and encouraging MOPAC to advocate for greater responsibility from football clubs for policing costs. A significant concern is the potential shortfall in police officer numbers compared to the Mayor's manifesto commitment to add 1,300 neighbourhood police officers and Police Community Support Officers (PCSOs). The committee is seeking clarification on how this commitment will be delivered. Finally, the committee questions the decision to pause the civilianisation of existing roles within the MPS and requests clarification on its potential impact on cost minimisation and recruitment.

• Transport for London (TfL) Budget: The committee has raised concerns about the Mayor's announcement to freeze bus and tram fares until July 2026, noting that the full cost and funding source had not yet been established at the time of the budget submission. They also highlight a consistent overestimation of passenger growth in TfL's budgets over the past two years and seek details on how TfL will manage financial implications if similar shortfalls persist. The significant reduction in bus ridership numbers is also a point of concern, and TfL is asked to set out how this decline will be reversed. The committee notes the increase in capital renewals expenditure but highlights that the £800 million allocated is less than the £1.1 billion to £1.2 billion estimated as necessary to maintain a steady state of repair for TfL's assets. The committee also seeks confirmation on how the DLR extension to Thamesmead will be funded and its impact on GLA budgets. Finally, the committee notes that the 2026-27 budget does not include provision for the repair of Hammersmith Bridge to carry motor traffic again, despite it being a Mayoral manifesto commitment to push the government for funding.

• London Fire Commissioner (LFC) Budget: A significant concern is the lack of sustainable funding for the Modern Firefighting Training Programme beyond 2025-26, which accounts for a major portion of the projected £12 million budget gap. The committee urges the Mayor to establish a sustainable funding plan for this programme. They also highlight the financial risks associated with pay award assumptions consistently being exceeded and recommend the Mayor urge a review of the national pay negotiation framework. The committee notes the depletion of the LFC's Budget Flexibility Reserve and the General Fund Reserve falling below the target level, raising concerns about financial resilience. Finally, the committee questions the increasing number of incidents where the LFB provides access assistance, particularly under the 'Collapsed Behind Locked Doors' agreement, without a corresponding transfer of resources or cost recovery mechanism. They also express concern about the sustainability of the capital programme, which is largely funded by borrowing, and the financial implications of the plans for 8 Albert Embankment.

• Affordable Housing Budget: The committee has analysed the subsidy levels for affordable homes, noting an apparent significant increase from the 2016-23 programme to the 2021-26 programme. They recommend that this analysis informs the targets for the new 2026-36 Social and Affordable Homes Programme. The committee also seeks clarity on the conditions required to enable a reduction in subsidy levels for the new programme and the associated risks. While acknowledging the £11.7 billion secured for the 2026-36 programme, the committee notes the absence of a confirmed annual expenditure profile or delivery plan and recommends that this be set out once agreed with the government. The committee also highlights the hockey stick effect observed in previous programmes, where delivery accelerates sharply in later years, and recommends incorporating interim delivery milestones into the new programme. Finally, the committee recommends that the Mayor sets out expectations for the new programme regarding the number of social rent homes, intermediate homes, accessible units, and the distribution of unit sizes.

Future Meetings of the Assembly

The Assembly is recommended to agree that the Plenary meeting on 5 March 2026 will be used principally to hold a question and answer session with invited guests on London's economy, jobs and growth, and the Mayor's growth plan.

Date of Next Meeting

The next scheduled meeting of the London Assembly will be a Plenary meeting on Thursday 5 February 2026.