Waltham Forest Council is set to go over budget by £31.4million by next March, reports Sebastian Mann, Local Democracy Reporter

Inset: Grace Williams, Credit: Waltham Forest Labour

Waltham Forest Council’s financial situation is “not getting better” amid mounting costs, council leader Grace Williams said at a cabinet meeting today (9th September).

The town hall is set to go over budget by £31.4million by next March, based on spending figures from June.

It is also facing a further deficit of £15.3m by 2028, though this figure is likely to change.

Speaking today (9th September), Cllr Williams said: “We really need to be clear. The situation is not getting better and there are no magic solutions.”

Having warned of “tough decisions” since last summer, she said the “actions we take now are going to be vital”.

Councillor Paul Douglas, the cabinet member for finance, said the two biggest strains on the council were providing housing for social care and providing housing for homeless families, which together makes up 73% of its total spending.

Though Waltham Forest has made internal cuts and reduced agency spending, there were “external factors [it is] unable to control,” with Cllr Douglas pointing to “unprecedented demand” for services.

By March, the council expects to have spent £23m on providing temporary accommodation, against a budget of £10m.

Borough councils across London have struggled with providing temporary housing. A citywide shortage of homes has forced councils to rely on expensive hotels and bed-and-breakfast-style accommodation, which has had crippling effects on certain authorities.

The cost of adult social care has risen by 13% since 2023/24, Cllr Douglas said, and managing services was “proving difficult” as providers were “failing and going out of business,” forcing the council to find “expensive” alternatives.

Waltham Forest entered the current financial year with a budget of £309m. In order to avoid financial peril, the town hall made a string of cuts to council tax support, free parking, and internal job openings.

The council is still looking for “new opportunities” to reduce pressure, but Cllr Williams says the key will be the upcoming fair funding review.

The government uses data from 2010 to determine how much funding councils receive, which has led to authorities losing money in real terms. Critics say it does not take into account major demographic changes that have happened in the past 15 years.

Cllr Douglas said Waltham Forest’s core spending power had reduced by 11% since 2010, while services “now cost a great deal more”.

Waltham Forest is not alone in its struggles. Councillors in the neighbouring borough of Redbridge have been warned of a budget shortfall of £43m, as the town hall faces similar challenges in social care and housing.

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