The Cabinet of Waltham Forest Council met on Tuesday, 17 March 2026, to discuss and approve significant financial strategies, including the council tax for the upcoming year, a comprehensive capital investment plan, and the renewal of a partnership agreement for health and social care services. Key decisions included recommending a 4.99% council tax increase, approving a £733.43 million capital investment strategy for the next decade, and renewing the Section 75 Partnership Agreement for the Better Care Fund.

Council Tax and Budget Setting for 2026/27

Cabinet recommended to Full Council an increase in the Waltham Forest basic council tax of 2.99%, with an additional 2% for Adult Social Care, bringing the total increase to 4.99%. This will result in a council tax of £1,876.45 per Band D property in 2026/27. The Greater London Authority's precept will add £510.51 per Band D property, making the overall council tax £2,386.96, an increase of 4.80%. The projected budget for 2026/27 is £607.255 million. Cabinet also approved the continuation of maximum percentage premiums for empty homes and substantially furnished but unoccupied dwellings, as well as a policy to disregard war disablement pensions for Housing Benefit calculations. The ambitious capital programme for 2025/26 to 2035/36 was also agreed, alongside a reserves strategy and the flexible use of capital receipts to fund savings initiatives. An application for Exceptional Financial Support (EFS) of £19 million from central government was noted.

Councillor Paul Douglas, Portfolio Lead Member for Finance and Resources, introduced the report, highlighting significant cost increases in temporary accommodation (80%), special educational needs packages (40%), and adult social care (8%). He stated that without Exceptional Financial Support (EFS) from the government, a balanced budget for 2026-27 would be impossible. The EFS funding would help keep council tax rises below 5% and protect essential services. Councillor Douglas assured that the Council had a clear plan for the use of this funding and a strategy to repay the loan promptly, aiming for a secure financial position with at least £30 million in reserves within three years.

Councillor Grace Williams, Leader of the Council, emphasised the Council's transparency with residents regarding external pressures such as borrowing rates and inflation. She stressed the importance of balancing the protection of services for the most vulnerable with the need for council-wide transformation. Councillor Williams acknowledged the government's efforts to understand local authority funding challenges but noted that many authorities remained underfunded. She highlighted the government's focus on Special Educational Needs and Disabilities (SEND) and the ambitious capital programme already delivering benefits across the borough.

Councillor Clyde Loakes, Deputy Leader (Climate and Air Quality), reported that concessionary fares were protected and funded. He also noted a slight reduction in the North London Waste Authority levy due to residents' positive response to changes in waste collection services, including fortnightly bin collections and food waste recycling, which had led to a reduction in residual waste and an increase in food waste tonnage.

Councillor Ahsan Khan, Deputy Leader (Housing and Regeneration), referred to the upcoming Capital Investment Strategy, highlighting a decade of work across the borough to drive improvements. He stated that despite the challenging financial climate, the Council would present an ambitious ten-year capital strategy focused on resident outcomes, with a significant portion dedicated to housing-led growth.

Councillor Louise Mitchell, Portfolio Lead Member - Adults and Health, pointed out that over 60% of the Council's budget was spent on services for adults with disabilities or long-term illnesses, with increasing demand year on year. She stressed the importance of efficient resource targeting and ensuring the safety and independence of elderly residents, noting rising costs for both the Council and service providers.

Capital Investment Strategy 2025/26–2035/36

Cabinet agreed to the draft Capital Investment Strategy 2025/26–2035/36, which outlines a planned investment of £733.43 million over the next decade. This strategy aligns with the Council's 'Mission Waltham Forest' vision and aims to deliver significant physical and social returns for residents. Key investment areas include housing, culture, community facilities, sports, green spaces, public realm improvements, schools, and a new crematorium. The strategy projects the creation of nearly 3,000 new homes, with approximately 50% being affordable, alongside the creation of around 2,000 jobs and 700 apprenticeships and work placements. The strategy also noted that financing sources are not ringfenced, and the financing of the Capital Programme is delegated to the Strategic Director of Resources for flexibility.

Councillor Ahsan Khan introduced the report, emphasizing its importance in outlining the Council's planned infrastructure investments and its alignment with the 'Mission Waltham Forest' framework. He highlighted that despite challenging economic conditions, the capital investment would remain substantial at £733.43 million, comprising £291.34 million for the General Fund and £442.08 million through the Housing Revenue Account. Councillor Khan stressed that the strategy would support the delivery of key priorities, including new affordable homes, improved council homes, transport infrastructure, and community facilities, while also addressing climate action and creating inclusive economic opportunities. He detailed the anticipated benefits, such as the delivery of 3,209 new homes (1,924 affordable), 1,942 local employment opportunities, and significant environmental benefits.

The Leader, Councillor Grace Williams, commended Councillor Khan and Mr. Joe Garrod for their leadership and the teams involved. She highlighted the Council's strong track record in capital investment over the past 15 years, attributing success to long-term political and officer leadership and the attraction of expertise from various sectors. She reiterated that a robust capital investment strategy is fundamental to achieving the borough's ambitions and that the current strategy builds on this strong foundation, strategically using investments to address inequality and improve services.

New Section 75 Partnership Agreement for Health and Social Care - Better Care Fund

Cabinet approved the entry into a new, open-ended Section 75 Partnership Agreement with NHS North East London (NEL) Integrated Care Board (ICB) from 1 April 2026. This agreement will manage the Better Care Fund (BCF) and other pooled funding arrangements, aiming to integrate health and social care services for improved resident outcomes. The total allocation for the borough's funding framework for 2026-27 is confirmed at £42,387,779. The agreement will facilitate the strategic use of funds to reduce hospital discharges, enhance intermediate care, minimise emergency admissions, and monitor care home placements, ensuring residents receive the right care at the right time. This new agreement replaces the previous time-limited one and aligns with current health and neighbourhood strategies.

Councillor Louise Mitchell, Portfolio Lead Member - Adults and Health, introduced the report, stating that the total allocation for the borough's funding framework for 2026-27 was £42,387,779, forming part of the wider neighbourhood health plan. She explained that the Section 75 agreement is crucial for the strategic use of funds to achieve outcomes such as reducing hospital discharges and admissions, and enhancing intermediate care. Councillor Mitchell highlighted that Waltham Forest was the only North-East London authority with a time-limited Section 75 agreement, and the new open-ended agreement, with mutually agreed termination clauses, would align with current strategies and reduce administrative costs.

The Leader, Councillor Grace Williams, acknowledged the positive impact of this work on the borough's most vulnerable adults and thanked Councillor Mitchell and the Adult Social Care team for their efforts.

Schools and Early Years Budgets 2026/27

Cabinet approved the final 2026/27 Local Funding Formula for schools, noting changes from the previous year. The indicative High Needs Block budget and the 2026/27 Early Years Funding Formula for providers were also noted. The gross Dedicated Schools Grant (DSG) allocation for 2026/27 is estimated at £380.97 million, with significant increases in the High Needs and Early Years blocks. The Early Years Block increase is largely due to the government's expansion of free early education entitlements for working families. The report also highlighted a projected deficit in the High Needs Block of £10.34 million for 2026/27, primarily due to increased demand for SEND support and out-of-borough placements.

Councillor Kizzy Gardiner, Portfolio Lead Member - Children and Young People, highlighted the government's expansion of funded childcare to 33 hours for working families, which she stated would provide significant financial relief and support children's development. She noted Waltham Forest's strong performance in early years outcomes for disadvantaged pupils and thanked early years providers and officers. Councillor Gardiner also acknowledged the ongoing changes in the education sector, including reforms in SEND and family purchase information, and expressed appreciation for the work of the Council's Schools team and educators.

The Leader, Councillor Grace Williams, commended Councillor Gardiner's leadership and agreed with the positive direction of change in the education sector. She mentioned discussions with the Secretary of State for Work and Pensions regarding plans to invest in young people not in education, employment, or training, noting that Waltham Forest's youth unemployment benefit claims were at 10%, double the national average.

Exceptional Financial Support (EFS) Mobilisation

Cabinet noted the mobilisation activity undertaken to meet EFS requirements and the strengthened governance arrangements supporting financial sustainability and transformation. They agreed to receive regular updates on progress through the Budget Monitor and approved the creation of a Strategic Director for Strategy, Change and Communities to lead the 'Mission Waltham Forest Transformation Programme'. Authority was delegated to the Chief Executive, in consultation with the Leader, to implement the Directorate structure in line with the Council's Managing Change Policy.

The Leader, Councillor Grace Williams, introduced the report, emphasizing its critical importance following the previous month's budget process. She highlighted the governance framework for EFS, the focus on transformation, and the need for clear milestones and metrics. Councillor Williams thanked the senior leadership team and Cabinet members, particularly Councillor Douglas, for their contributions. She stressed the importance of having the right personnel in place and proposed the creation of a new Strategic Director role to ensure coherence of the transformation plan and provide necessary staff resources for its implementation and the achievement of savings targets. She also outlined changes to the prevention operating model, led by Councillor Dixon and Ms. Amy Buxton Jennings, aiming to define interventions, establish measurement methodologies, and articulate desired impact.

Minutes of Cabinet

The minutes of the previous Cabinet meeting held on 19 February 2026 were approved and signed as a correct record.

Declarations of Interest

No declarations of interest were made by Cabinet members.

Apologies for Absence

An apology for absence was received from Councillor Naheed Asghar.