The Mayor’s nearly £20m budget gap and its likely impact

The Draft 2026-27 GLA:Mayor Budget includes an “estimated budget gap” of £19.2 million, resulting from a £21.3 million increase of expenditure and the loss of the UK Shared Prosperity Fund (UKSPF) grant - a £2.6 billion government fund launched as part of the Levelling Up agenda to invest in local communities, businesses, people, and skills.

The budget submission indicates that £10 million would need to be found through wider organisational savings to mitigate the worst impacts of the loss of the UKSPF grant.

The Mayor plans to spend £902 million on day to day activities and £2.8 billion on investment¹. This includes £148 million to continue the Universal Free School Meals programme, £45 million to redevelop the Crystal Palace National Sports Centre and £12 million to fund the loses of the London Stadium.

The London Assembly Budget and Performance Committee will meet tomorrow to understand what potential impact the estimated budget gap might have on services provided by the Mayor.

Guests are:

• David Bellamy, Mayor’s Chief of Staff 

• Richard Watts, Mayor’s Deputy Chief of Staff 

• Mary Harpley, Chief Officer, GLA

• Fay Hammond, Chief Finance Officer, Greater London Authority (GLA)

• Dianne Tranmer, Executive Director of Corporate Resources and Business Improvement, GLA

• Tunde Olayinka, Executive Director for Communities and Social Policy, GLA

• Phil Graham, Executive Director, Good Growth, GLA

The meeting will take place on Tuesday 18 November 2025 from 10am in the Chamber at City Hall, Kamal Chunchie Way, E16 1ZE.

Media and members of the public are invited to attend.

The meeting can also be viewed LIVE or later via webcast or YouTube. 

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