Sutton Council 2026/27 Budget

Sutton Council has today published its draft budget for 2026-27 ahead of consideration by Councillors of the Strategy and Resources Committee on 16 February 2026.

Key headlines from the budget report include: 

• Balanced budget: Despite the huge amount of pressure on the Council’s finances the Council will set a balanced budget for 2026/27. 
• Government cuts: The government's latest funding review has cut Sutton’s funding by 10.6%. By 2028/29 the Council will have a budget gap of £34 million. In addition, the amount of money the Council receives from the government for funding essential services for adult and children's social care and people who find themselves homeless continues to fall significantly below demand. 
• Investing in the future: Despite the challenges, the Council will continue to invest in local neighbourhoods including improvement to roads, schools, housing, parks and open spaces. 

Commenting on the proposed budget, Councillor Sunita Gordon, Lead Member for Finance said: “The government’s latest funding review is neither fair nor sustainable. It has resulted in significant cuts to Sutton’s funding. At the same time the amount of money the Council receives from the government for essential services for adult and children’s social care and homelessness support is not keeping up with the demand.

“The government is aware of this; rather than funding these services properly, they have left us in a position where the only way we can raise money for these essential services is to put Council tax up by the maximum amount. This budget, in line with government assumptions, therefore proposes a 2.99% council tax to protect services and a 2% adult social care charge this year. This equates to an increase of £1.71 per week for a Band D household.

“This unfair tax burden is falling on residents, when it is the government that should be finding the solutions to fund services properly. Alongside this, Sutton will still deliver £13 million in savings this year to protect frontline services.

“Through careful financial management, the Council will meet its legal duty and deliver a balanced budget.”  

 Leader of the Council Councillor Barry Lewis said: “This year has been an important year for Sutton in that we have received high praise for the essential services we are providing. Ofsted have rated us good for the support we provide to our children, as has the Care Quality Commission for our care for adults. We also achieved the highest rating for social housing. This shows that we are spending council tax wisely and providing high quality services.

“Despite the challenges, we are committed to delivering essential services and meeting the high expectations of our residents - from providing accessible and open libraries, clean streets, timely waste collections to excellent parks and roads

“We are also not complacent and remain focused on investing in Sutton's future. We will continue to invest in Sutton as a great place for businesses, by promoting our existing businesses and investing in Sutton High Street. The recently approved London Cancer Hub will also bring local jobs to Sutton both during the construction phase and once complete create 3,000 highly-skilled jobs. 

“This year's budget will see the Council invest in local neighbourhoods with improvements to roads, street lighting, parks and green spaces. Over £10 million will be invested in the improvements to our exciting social housing and regeneration of estates such as Elm Grove and Beech Tree Place and the newly built Chalk Gardens will provide more affordable homes for the people of Sutton. We also will invest in improving our schools, and increase support for those young people who have Special Educational Needs and Disabilities (SEND).

“Looking to the years ahead, the Council will need to find longer-term solutions to the impact of government cuts and the continued rising demand for essential services. To tackle this, the focus of the Council must now turn to a new transformation programme to fundamentally reshape how we deliver services and ensure long-term financial stability. This will include looking at new technologies to ensure Council services align to the standards people have become used to in other areas of their lives. I will share more about this in the year ahead.”  

Read the papers for the Strategy and Resource Committee meeting including the 2026/27-2028/29 Medium Term Financial Plan and 2026/27 Budget.