Sutton Council to set a balanced budget for next year and invest for the future

The Council today published its draft budget proposals for 2025-26. In a climate where incredible financial pressures are facing councils across the country, Sutton Council will set a balanced budget. 

Leader of Sutton Council, Councillor Barry Lewis, said: “This budget ensures Sutton residents will still have quality services that everyone values like waste collections and street cleaning. We will continue to look after our residents whilst still building a sustainable future for the children and grandchildren of Sutton. 

"It is essential to balance the books, but also important that Sutton residents and businesses can see how the Council is using our own resources, along with outside investment, to build a secure future.

"New affordable housing will help reduce the Council’s use of expensive temporary accommodation. Investors are supporting the London Cancer Hub in Sutton, a world-leading cancer discovery centre. This will bring numerous benefits to Sutton, creating 13,000 high-quality jobs, education opportunities, and space for growing businesses. We are creating a brand new and sustainable Civic Hub within an existing shopping centre in Sutton town centre. 93% of Sutton High Street shops are occupied, increasing to 100% in some of the smaller centres. All this will mean new jobs, homes and opportunities that will improve residents’ lives."

Councillors are being asked to consider an increase of 2.99% in residents’ council tax plus a 2% adult social care charge for 2025/26 bringing the total to 4.99%. This is in line with the vast majority of London boroughs.

Councillor Lewis continued: "The draft budget report highlights how the money the Council currently has to spend on essential services makes it very difficult to meet record demand. Increases in residents needing social care services, along with the rising numbers of people finding themselves homeless, continue to cause the greatest financial impact in Sutton.”

Councillor Sunita Gordon, Lead Member for Finance, said: “Sutton’s budget, like most councils across the country, is being pushed to breaking point by rising demands in adult and children's social care and temporary accommodation, issues out of the Council’s control.

“The pot of money the Council has to spend on essential services is still less than it was ten years ago and it is not keeping pace with increasing demand. 

“The new government is also trying to balance its own budget - resulting in less money for local authorities - and Sutton has received a below-average increase in funding. All this is placing huge, additional strains on our budget.” 

“Despite our good financial management and rigorous savings programme over the years, these pressures mean we can only set a balanced budget this year by raising council tax to make up the gap.

“We will be asking our residents to pay £1.62 more a week in Council Tax for an average Band D property in Sutton. We do this with a really heavy heart as we know many of our residents are struggling with the cost of living, but the Government has left us with no other option.”

Councillor Barry Lewis, added: “We have had to make very difficult decisions to balance the books. These tough decisions have meant that Sutton has not joined the growing list of councils who have gone cap in hand to the Government for more money. Extra Government support comes with strict conditions which can include closing libraries and slashing social care services to the bare statutory minimum. Sutton has not had to do this and can continue to provide specialist services.

"We are urging the Government to rethink its approach to council funding. We need changes to the outdated council tax system and we need them to finally deliver a proper funding plan for adult social care - waiting until 2028 is simply too late.” 

Read the papers for the Strategy and Resource Committee meeting including the 2025/28 Medium Term Financial Plan and 2025/26 Budget.