Contents
- Issues of the medium term financial strategy
- Medium term financial strategy
- Change in financial planning assumptions
- Budget pressures, growth, inflation, council tax and business rates
- Collection fund
- Fees and charges
- Risk Strategy
- Reserve and contingency strategy
- Transformation
- Capital programme
- Treasury
- Strategy milestones
- Risk and mitigation measures
- Comments of the director of finance and corporate services
- Comments of the monitoring officer
- Summary of legal implications
16. Summary of legal implications
Public Cabinet will note the proposed decisions, including seeking Members agreement to the current planning assumptions used in the Medium Term Financial Strategy for 2026/27 to 2029/30.
The report advises Members of the budget pressures facing the Council in 2026/27 to 2029/30. Members will note the report sets out the overall financial position as reported to Public Cabinet in February 2025.
The Council has a legal duty to set a balanced and sustainable budget and maintain adequate reserves such that it can deliver its statutory responsibilities and priorities.
The Local Government Act 2003 requires local authorities to monitor their income and expenditure against their budget. In discharging this duty, this report provides an update of the Council’s financial position and sets out the approach to addressing the budgetary challenges.
The report sets out the current planning assumptions used in the Medium Term Financial Strategy for 2026/27 to 2029/30.
Members are also informed of the risks to setting a balanced budget and the measures adopted to mitigate the identified risks.
The report advises Members of the Risk and Contingency Strategy. The Local Government Act 2003 requires the Chief Finance Officer (the Section 151 Officer) to report on, amongst other things, the adequacy of the reserves. When considering the level of general reserves to hold, legislation applicable to this matter includes provisions set out in the Local Government Finance Act 1992. The report advises Members of the Reserve and Contingency Strategy which are integral to the Council’s financial stability.
This report complies with the Council’s duty to monitor its income and expenditure pursuant to Section 28 of the Local Government Act 2003.
Members will note a further updating on the Medium Term Financial Strategy will be presented to Public Cabinet in October 2025.
Appendices
Appendix A - Medium Term Financial Strategy 2026/27 to 2029/30
Appendix A - Medium Term Financial Strategy 2026/27 to 2029/30
| Bexley | 2026/27 £m | 2027/28 £m | 2028/29 £m | 2029/30 £m |
|---|---|---|---|---|
| Business rates and RSG | ||||
| Business rates | (56.622) | (57.640) | (58.676) | (60.384) |
| Revenue support grant | (4.502) | (4.591) | (4.682) | (4.776) |
| Total business rates and RSG | (61.124) | (62.231) | (63.358) | (65.160) |
| Corporate grants | ||||
| Local authority better care grant | (6.616) | (6.616) | (6.616) | (6.616) |
| Homelessness prevention grant | (3.448) | (3.448) | (3.448) | (3.448) |
| Social care grant | (8.040) | (8.040) | (8.040) | (8.040) |
| Total other grants | (18.104) | (18.104) | (18.104) | (18.104) |
| Total in year funding | (236.234) | (244.000) | (252.069) | (260.678) |
| Movements to earmarked reserves | 0.600 | 0.600 | 0.600 | 0.600 |
| Total funding | (235.634) | (243.400) | (251.469) | (260.078) |
| Service expenditure | 244.261 | 257.106 | 269.894 | 283.271 |
| Total interest and financing costs | 12.462 | 12.462 | 12.462 | 12.462 |
| Total levies | 8.869 | 9.622 | 10.306 | 11.187 |
| Planned net expenditure on services | 265.592 | 279.190 | 292.662 | 306.920 |
| Total contingency | 2.700 | 2.700 | 2.700 | 2.700 |
| Total budget requirement | 268.292 | 281.890 | 295.362 | 309.620 |
| Budget gap | 32.658 | 38.490 | 43.893 | 49.542 |
Appendix B - Legislative changes
Other legislative changes
Other Legislative changes that will impact the Council are as follows:
Children's wellbeing bill
This Bill is intended to cover children's wellbeing and the education system. It will free breakfast club provision in primary schools.
Children not in school
Introduces new statutory burdens for the Council which may require further resourcing to meet the needs to track, report and provide other provision and support to students and parents. May require the Council to undertake monitoring attendance and quality of the offer. The funding however will be provided directly to the schools.
Require local authorities to create, maintain and publish a register of all children (currently around 92,000) who are not in school (that is, educated at home or not educated full-time in school). Local authorities will also be required to provide support to home-educating parents.
Co-operation on admissions and place planning
Introduces new duties for mainstream state schools and local authorities to co-operate with each other regarding admissions and for mainstream, special and alternative provision state schools to co-operate with local authorities regarding place planning. It is anticipated that there will be a need to review the current structure of the school admissions team. Require all schools to co-operate with the relevant local authority on schools admissions, SEND inclusion and place planning.
Repeal of duty to make academy order in relation to school causing concern
Require all schools (including academies) to teach the national curriculum. Changes the current duty to issue academy orders to the most underperforming maintained schools into a discretionary power. It is anticipated that this will create additional work and responsibilities for the team, potentially creating a resource issue. Bring multi-academy trusts (which run over 45% of state schools) into the inspection system to ensure greater transparency and fairness.
Local authority direction powers
Extends local authorities’ current powers to direct a maintained school to admit a child, to include academies. Additional governance arrangements will need to be implemented.
The proposed social care reforms reinforce or expand statutory duties for local authorities under existing legislation such as the Children Act 1989 and 2004, Children and Social Work Act 2017 and Education Act 1996. It seeks to regulate establishments and agencies under Part 2 of the Care Standards Act 2000, and repeals section 128 of the Education Act 2002. Implementation of the Bill will have an impact on the delivery of services across children’s social care and education.
Establishment of new schools
Changes the legal framework for opening new state-funded schools; ending the current legal presumption that new schools should be academies and allow proposals for other types of school to be put forward where a new school is needed, including proposals from local authorities themselves. This may create additional work, but it is considered to be for the overall benefit of the education system.
Family group decision meetings (FGDM)
The requirement to offer a family group decision meeting may require a new service to deliver this resulting in additional resources and the costs associated with the same. The council has launched a Family Hub in Erith but may open a further 2 hubs with the aim of reducing costs through Early Help/Intervention and Child in Need work. The government’s Children’s Social Care Prevention Grant (£968,262 for 2025/26) includes fulfilling the Council’s duties relating to FGDM.
It is anticipated that there will need to be changes to Children’s Services case management system (LiquidLogic) which may result in additional costs and training. These costs have not been quantified at present.
The establishment of multi-agency child protection teams
Due to be implemented in 2027 will require the Council to work with safeguarding partners and establish a MACPT in or one or more area. The Council will need to co-design a MACPT with health and the police however this may be impacted by cuts at both the ICB and Metropolitan Police. There may be additional costs in the development of a Lead Child Protection Practitioner.
Kinship local offer
Resources are likely to be required for the co-design of the Kinship Local offer, which is a detailed document outlining the services and support available to families who are caring for children who are not their biological parents, such as relatives, friends, or other trusted individuals. This offer replaces the previous "local family and friends care policy" requirement.
Key Features of the Kinship Local Offer:
- Accessibility and visibility - local authorities are required to ensure that this information is readily available and easily accessible to kinship carers, often through their website or other public channels
- Comprehensive support - the local offer should outline a range of support services, including financial assistance, training, support groups, and guidance on navigating the system
- Meeting child's needs - the focus should be on supporting the child's well-being and ensuring they have access to necessary resources, regardless of the legal status of the kinship care arrangement
- Clear communication - the local offer should provide clear information about eligibility criteria, access points, and the specific services available within the borough
- Regular updates - local authorities are expected to keep the local offer current and relevant, reflecting changes in policies and service offerings
Examples of support offered:
- Financial support - financial assistance may be available to cover expenses related to caring for the child, such as childcare costs or clothing
- Training and support groups - opportunities to learn about child development, special needs, and other relevant topics can help kinship carers feel more prepared
- Accommodation and other resources - some local authorities may offer additional support with housing, education, or other services
- Support for family time - the local offer may also outline support for managing family visits and maintaining relationships with biological parents
Where to find the local offer:
The London Borough of Bexley's website is the primary source for the latest information. Contact Bexley's Children's Services department for further guidance. The Kinship website may also have links to local authority offers.
Part 7 of the Housing Act 1996
The proposed amendment will mean that care leavers cannot be deemed to be intentionally homeless and, providing all other criteria are met, there will be a duty to secure them settled accommodation. This will result in some additional costs although the amount is considered to be minimal due to the number of care leavers who have been found to be intentionally homeless in recent years
Agency workers
The bill proposes regulations applying to all local authorities on the use of agency workers in children’s social care and would replace statutory guidance from 2024.
Deprivation of liberty
The bill would provide for the authorisation of the deprivation of liberty of children in alternative placement types beyond just a secure children’s home. It brings within the scope of section 25 accommodation provided for the purpose of care and treatment of children that is capable of being used to deprive a child of their liberty (“relevant accommodation”). The secretary of state would have powers to set out in regulations: (1) the maximum period for which a child may be kept in relevant accommodation both with and without the authority of a court, (2) the cohort of children who may be placed in relevant accommodation, and (3) a description of the alternative accommodation. This may result in an increase or decrease in DOLs applications by the local authority dependent on the regulations.
Education
Free breakfast club provision in primary schools.
May require the Council to undertake monitoring attendance and quality of the offer. The funding however will be provided directly to the schools.
Children not in school
Introduces new statutory burdens for the Council which may require further resourcing to meet the needs to track, report and provide other provision and support to students and parents.
Repeal of duty to make academy order in relation to school causing concern
Changes the current duty to issue academy orders to the most underperforming maintained schools into a discretionary power. It is anticipated that this will create additional work and responsibilities for the team, potentially creating a resource issue.
Co-operation on admissions and place planning
Introduces new duties for mainstream state schools and local authorities to co-operate with each other regarding admissions and for mainstream, special and alternative provision state schools to co-operate with local authorities regarding place planning. It is anticipated that there will be a need to review the current structure of the school admissions team.
Local authority direction powers
Extends local authorities’ current powers to direct a maintained school to admit a child, to include academies. Additional governance arrangements will need to be implemented.
Establishment of new schools
Changes the legal framework for opening new state-funded schools; ending the current legal presumption that new schools should be academies and allow proposals for other types of school to be put forward where a new school is needed, including proposals from local authorities themselves. This may create additional work but it is considered to be for the overall benefit of the education system.
Impact on staffing
The Council has estimated proposed costings for the appointment of a senior lead for the reforms and a programme manager from April 2025 to 2027. The combined costs on Bexley grades total £0.193m a year, this sum will be higher if agency staff are commissioned. The Education Service has considered the impact of changes in the Bill and staffing costs arriving at a full year cost of £0.162m. It is anticipated that overspends will be reported in monthly forecasts.
Leasehold and commonhold reform bill
This Bill seeks to end the system of leasehold and to "reinvigorate commonhold by:
Implementing the Leasehold and Freehold Reform Act 2024; Enacting Law Commission recommendations to bolster leaseholders' fundamental rights to extend their lease and buy their freehold (enfranchisement) and take over the freeholder's building management functions (Right to Manage); Modernising the current commonhold legal framework and consult on the best way to restrict the sale of new leasehold flats; Regulating ground rents for existing leaseholder;
Equality (race and disability) bill
This bill seeks to enshrine in law the right to equal pay for ethnic minorities and disabled people. It will also introduce mandatory ethnicity and disability pay reporting for larger employers (with more than 250 employees) to close the existing ethnicity and disability pay gaps.
Tobacco and vapes bill
Trading Standards will also be given greater powers under the Bill to deal with underage tobacco and vape sales and local authorities will be able issue fixed penalty notices in respect of these.
Mental health bill
This Bill is primarily intended to modernise the Mental Health Act 1983 (MHA 1983) by: Giving patients a statutory right to be involved in their care planning and to make choices around their treatment; revising and shortening the period that a patient under the MHA 1983 may be detained for treatment and providing for faster, more frequent review and appeals in relation to detention and treatment; introducing a new statutory role (nominated person). The nominated person will be chosen by the patient to replace the nearest relative. It is expected that the reforms proposed under this Bill will take a number of years to implement, given the demands around recruiting and training more clinical and judicial staff. As such, the reforms will be introduced in phases, once sufficient staff are in place.
The renters rights bill
This Bill is intended to abolish "no-fault" evictions under section 21 of the Housing Act 1988 and strengthen landlords' rights of possession. Proposed changes will also make it easier for local authorities to target enforcement action at criminal landlords and provide authorities with further enforcement powers.
Cyber security and resilience bill
This Bill is intended to strengthen the UK's cyber defences to provide better protection of digital services and to avoid future cyber attacks, particularly those affecting the public sector (such as local authorities, hospitals and government departments).
Crime and policing bill
This Bill is intended to strengthen community policing, including by introducing new powers for the police to tackle anti-social behaviour and knife crime and violence against women and girls. Proposed changes seek to crack down on anti-social behaviour by introducing new Respect Orders to tackle persistent adult offenders, fast tracking Public Spaces Protection Orders to deal with street drinking and new powers to deal with the use of off-road bikes. Local partners will be required to work together to tackle anti-social behaviour and to appoint an anti-social behaviour lead in every local authority area.