Labour Council's budget in chaos, as election panic sets in
Local Liberal Democrats have raised serious concerns over Labour Council bosses' attempts to sneak through last minute and risky cuts to services for the most medically vulnerable children in the borough.
Labour-run Merton Council faces drastic funding cuts in the coming years owing to the Government's so-called 'Fair Funding' allocation. Significant cuts to Merton's funding are heading our way, even on their own figures, the Council expects a £23.9 million Budget gap by 2029/30.
To make up for this poor deal from Government, Labour have proposed a Budget with around £13m of 'savings' this coming year. These largely involve cuts to spending on local services, including £3m announced at the last minute. The Council aims to find over £1.5 million from a saving referred to in budget papers as 'Strategic joint commissioning & service delivery for vulnerable children'.
This proposal seeks to push higher charges on other bodies that provide care. If these other organisations refuse to agree to shoulder more of the cost, it will either leave a large hole in the budget – or else mean cuts to vital services.
This is one of 2 proposals rushed through at the last minute, barely 2 weeks before the Council votes on its budget and without going through the usual process of budget 'scrutiny'.
This is likely an attempt to avoid criticism of the plans, a reflection of the desperation of Labour Council bosses at the prospect of poor election results in May. Merton Council has been Labour-controlled since 1990, except for 4 years in the mid-2000s, and has been described by Labour as "one of London's most marginal councils".
A proposal already put forward by Labour as part of this budget round risks services being reduced for Children and Adolescent Mental Health Services (CAMHS). This again sought to pass costs onto the NHS through 'a joint funding agreement', which hasn't been agreed by the NHS. This is one of a number of plans in the budget papers to save money from children and adult social care.
The Liberal Democrats are deeply alarmed by Labour's plan to risk young people's health support.
On top of this, Labour hopes to raise half a million pounds by hiking fees for Council services, hiking over 700 fees – from residents parking permits, to pitch hire for sports clubs, to allotments. Moving significant costs directly on to residents.
Recently Labour councillors blocked Liberal Democrat proposals supporting those on the lowest incomes, and refused to look again at their massive fee increases, despite the cost of living crisis.
A stark warning appears from the Council's Chief Finance Officer in the latest budget papers, that as a result of their latest decisions in the budget, Merton would see "a permanent and compounding loss of funding for the Council Budget."
Merton Liberal Democrat Leader of the Opposition Cllr Anthony Fairclough commented:
"These rushed and panicked proposals are shameful.
"Labour claim they are doing all they can to support residents with the high cost-of-living.
"Yet, behind the scenes they are quietly introducing inflation-busting increases to Council services, and also hoping to pass the cost of young people's health services onto the NHS.
"They are desperate to cover up the impact of massive cuts the Government is forcing on them.
"The Liberal Democrats will continue to push for transparency and integrity in this Budget whilst working to make Merton fairer and more affordable."
ENDS
Notes to Editors:
Liberal Democrat budget amendments for the budget-setting meeting on 25 February 2026 will focus on re-opening the social prescribing service for young people with mental health needs while prioritising sustainable finance.
The February Cabinet report detailing these savings proposals and the comments from the Executive Director https://democracy.merton.gov.uk/documents/s58121/Complete%20Draft%20-%20Report%20Appendices%20Sections%202-4.pdf.
The changes to Camhs are saving CLLF 2026/27/00 and the changes called "Strategic joint commissioning & service delivery for vulnerable children" is saving CLLF 2026/27/009
