The Housing and Homelessness Policy and Accountability Committee is scheduled to consider proposals for the council's revenue budget and medium-term financial strategy for the upcoming year. The committee will also review the Housing Revenue Account budget for 2026/27.

2026/27 Revenue Budget and Medium-Term Financial Strategy

The committee is set to receive an update on the preparation and proposals for the 2026/27 revenue budget, including an assessment of risks, financial resilience, and the anticipated impact of these proposals. A presentation on the Housing General Fund is also scheduled. The report outlines the council's revenue budget for 2026/27, detailing key assumptions, new investment proposals, and expected efficiencies. It also provides an update on the Medium Term Financial Strategy (MTFS), focusing on the adequacy of reserves and balances to ensure long-term sustainability and strong financial governance.

The report highlights that the strategic operating environment for public services remains challenging, with demand-led pressures in areas such as Adult Social Care, Children's Services, and Homelessness. Combined with the impact of the Fair Funding Review 2.0 and changes to the Business Rates Retention System, the council anticipates continued financial challenges. For the first time in several years, the government has confirmed a multi-year settlement from 2026/27 to 2028/29, and Hammersmith and Fulham is eligible for transitional funding relief over this period.

The overall objectives for the 2026/27 revenue budget proposals include protecting the delivery of core services, ensuring the safety of the borough, supporting prosperity, promoting an efficient council, and maintaining strong financial governance. A balanced budget for 2026/27 is proposed, incorporating £9.5 million in efficiencies, which aims to allow for the continued delivery of services to residents, businesses, and visitors. This builds on the council's record of prudential financial management and has resulted in modest budget surpluses and increased reserves in recent years.

A proposed increase in Council Tax of 2.99% and an additional social care precept, equating to an increase of 92p per week for Band D properties, is expected to generate an additional £4.4 million annually. This funding is considered essential for the council's financial resilience, meeting increasing demand and inflation, while balancing the impact on local taxpayers. The committee is invited to consider these budget proposals and make recommendations to the Cabinet.

The report also details proposed savings relevant to the committee, including £1.1 million from the transfer of leases to a housing company and £0.1 million from additional income from licences. The committee will also consider proposed changes to fees and charges, with a standard uplift of 3.8% recommended for most non-commercial and non-parking fees.

The Housing Solutions service, which covers Homelessness Prevention and Assessment, Temporary Accommodation, Housing Standards, and Housing Strategy, faces significant financial challenges due to the national homelessness crisis. This includes rising costs for temporary accommodation, increased demand for homelessness services, and a lack of available housing supply. The net budget for the Housing General Fund in 2026/27 is £21.5 million. An inflationary uplift of £1.0 million is required for temporary accommodation due to rising rents, with mitigating actions being taken. Revenue savings of £1.2 million are planned, partly through exploring the establishment of a wholly-owned housing company to manage leased temporary accommodation properties. This approach aims to align rental levels with current Local Housing Allowance (LHA) rates and reduce the subsidy shortfall impacting the council's budget.

Housing Revenue Account Budget 2026/27

A slide presentation on the Housing Revenue Budget 2026/27 and its Business Plan is scheduled to be delivered at the meeting.

Date of Future Meetings

The dates for future meetings are also listed, with the next scheduled for 20th April 2026.