MD3330 GLA: Mayor Budget 2025-26

1.1.    This final GLA: Mayor budget (“final budget”) which the Mayor is invited to approve is structured around 14 “programmes” and “core” activities, that will become the basis of reporting into the future. This marks the next step away from the Recovery Missions implemented during the COVID-19 pandemic and aligns with a change in approach in governance within the GLA, as it moves towards a portfolio approach to delivery. 
1.2.    When the draft budget was published in November, a small reduction in the underlying allocation of base funding was anticipated and this position has not altered. However, an allocation of £170.0 million has been made from GLA Group resources, and together with the use of external income, supports a total revenue expenditure budget for 2025-26 of £904.1 million, as well as the capital programme of £1.8 billion. This group allocation ensures the continuation of the Universal Free School Meals programme for the next three academic years.
1.3.    This final budget allocates revenue and capital against the 14 strategic, high-level programmes. It does not present the detailed activity of each Delivery Plan being produced in response to the Mayor’s mandates for each programme. These Delivery Plans will be published as Mayoral Decisions following the approval of this budget. The 14 programmes outlined in the budget document are as follows:
1    Building more homes
2    Making best use of land
3    Improving London’s housing stock
4    Reducing inequalities
5    Accommodation and wider support for those who need it most
6    Reducing non-residential emissions
7    Delivering a greener, more climate-resilient London
8    Cleaning London’s air
9    Supporting Londoners to benefit from growth
10    Supporting and inspiring young London
11    Boosting London’s growth sectors
12    Helping local economies to thrive
13    Upgrading London’s infrastructure
14    Celebrating London.
1.4.    This focus on programmes replaces the reporting under themes presented last year and aligns with a change in the governance approach to delivery across the GLA. The budget is also presented by directorate. The programmes account for £788.0 million of the gross revenue expenditure, whilst core activities account for £116.1 million.
1.5.    A capital programme of £1.8 billion is also confirmed with £1.6 billion of that allocated to the Affordable Homes Programme and other housing-related investments.
1.6.    The GLA: Assembly budget is approved separately by the London Assembly’s GLA Oversight Committee and so is not included in this decision. The funding flows to the London Stadium, following the Mayor’s decision that it will transfer from LLDC to the GLA, are as set out in the GLA Group Final Budget 2025-26 and not shown in this budget.
 

2.1.    The final GLA: Mayor budget for 2025-26 sets out the financial envelope for the GLA’s Mayoral operations for the year. The final GLA: Mayor budget will be deployed to meet the Mayor’s priorities for the GLA. The appendix describes the programmes through which this will be achieved.
2.2.    The capital strategy sets out spending plans from 2025-26 to 2028-29 along with aspirations and plans to implement the Mayor’s policies over the longer term to 2043-44.
 

3.1.    The equality impacts are set out in the appendix. 
3.2.    The Mayor and the GLA are required to comply with the Public Sector Equality Duty (PSED) set out in section 149(1) of the Equality Act 2010 in the exercise of their functions. This requires them to have due regard to the need to eliminate discrimination, harassment and victimisation and any other conduct prohibited by or under the 2010 Act, advance equality of opportunity, and foster good relations, between those who share a protected characteristic and those who do not. The protected characteristics are: age, disability, gender reassignment, marriage and civil partnership, pregnancy and maternity, race, religion or belief, sex, and sexual orientation.
3.3.    The duty will be complied with on an ongoing basis, and equalities impacts will continue to be assessed and taken into account, as appropriate when individual programmes and project specifications are developed and approved through the GLA’s decision-making framework.
 

4.1.    An assessment of the environmental impact of the budget is set out within the appendix.
4.2.    The budget setting process has been carried out in accordance with the statutory requirements in the Greater London Authority Act 1999 (GLA Act). The London Assembly approved without amendment the GLA: Mayor component budget council tax at its meeting of 25 February 2025.
4.3.    It is recognised that all GLA officers have an interest in the budget as it funds their employment. This budget has been developed in a process overseen by the Mayoral Delivery Board to ensure that it is driven by Mayoral priorities rather than those of any individual or team.
 

5.1.    Financial issues are integral to this decision and are presented in detail in the appendix. There are risks and uncertainties inherent in programmes reliant on government/external funding and government policy on council tax and business rates in the medium term. The budget development, consultation and approval process has arrived at a reserve position which is judged to be reasonable, necessary and prudent. This will be kept under review.

6.1.    As confirmed at paragraph 4.2 above, the budget setting process has been conducted in accordance with the statutory provisions in Part III and Schedule 6 of the GLA Act 1999.

7.1.    The budget will come into effect on 1 April 2025. 

Appendix 1 – GLA: Mayor budget for 2025-26.