London Borough of Merton – Progress Review

The council received an LGA Corporate Peer Challenge (CPC) during October 2024 and then published the report with an accompanying action plan. 

This Progress Review is an integral part of the Corporate Peer Challenge process. It is designed to provide space for the council’s senior leadership to:

• Receive feedback from peers on the early progress made by the council against the CPC’s recommendations and the council’s CPC action plan.
• Consider peers’ reflections on any new opportunities or challenges that may have arisen since the peer team were ‘onsite’ including any further support needs.
• Discuss any early impact or learning from the progress made to date.

The LGA would like to thank Merton Council for its commitment to sector led improvement. This Progress Review was the next step in an ongoing relationship that the council has with LGA sector support.

The Progress Review at the London Borough of Merton took place (onsite) on 15 October 2025. It focussed on the recommendations from the Corporate Peer Challenge, under the following theme headings: 

• Community Connection & Borough Identity
• Leadership & Strategic Alignment
• Equality, Inclusion & Wellbeing
• Financial Sustainability & Resource Planning
• Delivery Models & Organisational Capacity
• Economic Growth & External Engagement

Two members of the original CPC team participated in the Progress Review:

• Lead Member Peer - Cllr Grace Williams, Leader, London Borough of Waltham Forest
• Lead Officer Peer - Jenny Rowlands, former Chief Executive, London Borough of Camden 

In addition, the Progress Review was supported by Kevin Kewin (LGA Progress Review Manager) and Matthew Dentten (LGA Adviser - Assurance and Accountability).

The CPC report featured thirteen recommendations, which the council has arranged around six themes. This peer team has used this structure below to feedback its reflections.

The peer team found that the council has made good progress over the last year. This includes significant work to improve the council’s communications, develop the organisation’s internal capacity and take forward the council’s economic growth agenda. The council also demonstrates a good understanding of its challenges, including the need to address its structural financial deficit.

The peer team was impressed by the energy and ambition shown by both members and officers. This momentum is reflected in tangible outcomes, with strong external validation of the council’s performance. For instance, since the initial CPC, the council has retained its Outstanding Ofsted judgement for children’s services and received a Good rating from the Care Quality Commission for adult social care.

3.1 Community Connection & Borough Identity 

Recommendation 1: Celebrate and nurture what partners, communities, and staff think is great about Merton and harness the energy they have to build on this. 

Recommendation 2: Look at how the council can develop the storytelling of the benefits of the borough and the achievements of the council, to further engage the communities and gain stronger buy-in to the ambitions.

Feedback 

The council has strengthened its communications function to better tell the story of Merton and celebrate its successes. Recent high-profile activity includes a dedicated programme to celebrate ‘Merton at 60’ and support for the Borough of Sport initiative – notably its flagship ‘Big Sports Day’. In addition, the peer team heard of the tangible benefits from recent communications campaigns. For example, targeted efforts have supported the recruitment of permanent social care staff, reducing reliance on agency workers. The council also recognises the importance of evaluating the impact of its communications more systematically and is taking steps to strengthen this.

The council has progressed its approach to community engagement. The peer team considered the recent work undertaken through Merton’s ‘Big Conversation, a borough-wide engagement exercise. Although this initiative is similar to approaches seen in other councils, it represents an important shift for Merton in terms of moving towards more direct resident involvement and beyond a reliance on intermediary organisations. As this model evolves, the peer team encourages the council to explore further opportunities for co-production and neighbourhood-level engagement.

Partners highlighted the importance of visible development in Morden town centre to demonstrate council delivery and sustain momentum around the borough’s ambitions. The peer team welcome the progress made since the CPC, including Cabinet’s agreement of a regeneration plan and the work currently taking place to secure a development partner. While the council is taking a pragmatic approach to getting regeneration underway, it recognises that site viability challenges may persist. There is also a risk of engagement fatigue. In light of this, the peer team supports the council’s parallel focus on meanwhile activity, including the appointment of a permanent town centre manager, the development of a wayfinding trail and a series of local events.

There is a strong appetite from partners to build on recent progress and deepen collaboration with the council. The forthcoming development of the new Community Plan presents an opportunity to harness this enthusiasm and align efforts. Alongside these strategic conversations, there is also scope for the council to reflect on how its own operations can better support partnership working. For example, partners noted opportunities to more effectively leverage existing assets, such as the community screens during Wimbledon fortnight.

3.2 Leadership & Strategic Alignment 

Recommendation 3: Create more space for regular, strategic conversations for the member/officer leadership of the council.

Recommendation 5: Pause and reflect on progress to date against the three strategic priorities and what outcomes you want to achieve.

Recommendation 9: Review the prioritisation of key projects and align resources to support delivery.

Feedback

Following the CPC, the council convened an externally facilitated awayday for Cabinet and the Senior Leadership Team (SLT) to reflect on collective working arrangements. This has led to more frequent strategic meetings between the political and officer leadership. Cabinet members reported that this has enhanced collaboration, while officers reflected on increased confidence in cross-organisation working. The peer team was pleased to note this progress as well as the opportunity to build on the new arrangements. This could include, for example, a greater focus in some sessions on early ideas thinking and horizon scanning, as well as oversight of key initiatives. There is also potential value in further joint discussions between Cabinet and SLT, which create space for members and officers to think collectively beyond their individual portfolios and responsibilities.

The good member-officer relationships identified in the CPC have been maintained. Positively, the peer team also observed progress in supporting more distributed leadership, with recently appointed executive directors taking more prominent corporate roles. One area that would be benefit from further consideration is Overview and Scrutiny (O&S). Although the council has received an impact review from the Centre for Governance and Scrutiny since the CPC, the recommendations have yet to be implemented. There is value in the council considering further how O&S could develop, with a view to making changes following the local elections.

The CPC highlighted the work undertaken to create recognition and support for the council’s three strategic themes with its 2023 corporate plan: nurturing civic pride, building a sustainable future and creating a borough of sport. In March 2025, the council introduced four annual pledges, including the creation of a permanent safer streets team and the rollout of pop-up tips in every neighbourhood. More recently, the council has announced four priorities, which will be the focus of its new Delivery Unit (DU): anti-social behaviour, child poverty, cleanliness and temporary accommodation. 

Overall, there was a good understanding of how these priorities align with the council’s corporate plan. However, the peer team noted some concerns about the organisation’s ability to effectively manage an expanding portfolio of programmes. The council has taken steps to address this. For example, the leadership team has recently overseen a comprehensive prioritisation review of key projects and activities to support a shared focus, and directorate management teams have a key role in ensuring delivery momentum. In the longer-term, the council may need to make some difficult decisions on discontinuing activities and reinforce a culture of prioritisation. The forthcoming corporate plan refresh is an opportunity to take stock, including to ensure that priorities are clear and aligned to both available resources and corporate focus.

3.3 Equality, Inclusion & Wellbeing 

Recommendation 4: Recognise pockets of excellence around the approach to equality, inclusion and diversity (EDI), in particular in the children and families service and staff networks, share good practice more rapidly across the organisation, strengthen senior management sponsorship and enhance staff wellbeing.

Feedback

The council has made visible progress in advancing its approach to equality, diversity and inclusion. Staff networks have expanded in both number and membership, with new groups – such as the women’s and neurodiversity networks – gaining momentum. The peer team was impressed by the network chairs, who effectively raised issues and proposed improvements from both workforce and service delivery perspectives. Positively, inter-network collaboration was highlighted as a strength. 

The council’s senior leadership has played an important role in supporting the development of the networks. This has included providing a small budget, protected time and a senior officer sponsor for each group. The peer team heard that recent developments, such as supporting a network presence at staff conferences, have further increased visibility and engagement. In light of recent community tensions across London, the council is currently facilitating sessions for staff to reflect on these issues and discuss the organisation’s approach. The peer team recognises the value of this deliberative work, while also noting that some staff have expressed a preference for a more immediate response.

The council has also invested in training, including ‘Managing with Integrity’ sessions, to build awareness and capability across the workforce. While progress is evident, the peer team found that good EDI practice is not yet consistently embedded at all levels of the organisation. To address this, EDI will be a golden thread running through the forthcoming workforce strategy, which will place a strong emphasis on organisational culture. The council is currently recruiting an Organisational Development (OD) lead to help finalise and implement the strategy, which will also support improved workforce planning and the effective use of technology.

3.4 Financial Sustainability & Resource Planning 

Recommendation 7: Develop clear plans to reduce the structural budget deficit within a three-year period.

Recommendation 8: Use funding to support workforce planning to fund apprenticeships so learning is shared early and embedded.

Feedback

The council’s financial position remains relatively strong, supported by low levels of debt and healthy earmarked reserves. Notably, the external auditor’s most recent annual report identified no significant weaknesses and made no improvement recommendations in its value for money judgement. 

The council benefits from strong financial management and is actively working to address its structural budget deficit. In 2025/26, an additional £8.5m of growth funding was allocated to services experiencing significant pressures. A further £4m of growth is planned in 2026/27 for children’s services and temporary accommodation, and a cross-council mitigation plan has been developed to address in-year pressures in these areas. There is an organisational transformation programme designed to generate cost savings and efficiencies, and external challenge and support is being brought into children’s services.

The council has a clear understanding of its pressures and is confident it has the financial disciplines required to close the gap; however, this was not fully evidenced to the peer team at the time of the visit. While the council has taken action to address its general fund deficit and has further plans in place, it was not clear that this will be sufficient. As is the case for many London Boroughs, the council faces increasing financial pressures. The current 2025/26 budget reflects this, with reduced contingency provisions alongside a higher savings target. Despite additional investment, mid-year monitoring is forecasting a overspend of £1.9m in 2025/26.The Medium-Term Financial Strategy (MTFS) forecasts an increased savings gap of £20.4 million by 2029/30, driven in part by the anticipated impact of the Fair Funding Review.

The council is transparent about its challenges relating to the Dedicated Schools Grant (DSG). The cumulative DSG deficit is forecast to rise to £65.9 million by March 2026. The council reported to the peer team that it is delivering its commitments within its Safety Valve agreement but that its DSG deficit is driven by DfE delays on the delivery of a new SEN school, alongside the cost of individual Education, Health and Care Plans (EHCPs). Nevertheless, this level of deficit remains a risk for the council as it unclear what level of support will be provided by central government to address this issue. 

In relation to apprenticeships, the council has short-term funding in place to support its current corporate programme until, but not beyond, 2026/27. Given this, work is underway to explore options for directorate-led approaches that do not rely on longer-term corporate funding. In addition, the council has also just commenced work on an early career strategy, which will include a focus on apprenticeships, that will look beyond council operations to the role of local employers in supporting the employment and training of young people.   

3.5 Delivery Models & Organisational Capacity 

Recommendation 6: Consider what kind of council you want Merton to be now and over the long term, including the approach to insourcing, commissioning, and the approach to council housing management.

Recommendation 10: Build in-house capacity, capability and skills to reduce reliance on external advice

Recommendation 12: Develop a clearer, more consistent and more accessible ‘one council’ approach to delivery models and ensure capacity to enable the change the council needs to achieve. 

Recommendation 13: Build on the good practice employed in digital and other areas, to create a more structured approach, with a clear methodology and strong governance arrangements for all delivery models and improvement programmes.

Feedback 

The council has taken a deliberate decision to maintain a pragmatic approach to delivery models, and recognises the benefits and risks associated with different approaches. Since the CPC, the council has progressed its plans to create a Housing Revenue Account. This is a significant decision for the council which previously transferred its council housing properties to a registered provider more than 15 years ago.  The peer team also heard that the recent insourcing of street cleansing services has been successful – supporting improved operational deployment – while recognising that implementation was still at a relatively early stage. At the same time, the council continues to commission and outsource major services, with recent and upcoming procurements in waste collection and grounds maintenance noted by the peer team.

The council has built in-house capacity, most notably the creation of a Delivery Unit to help support delivery of key priorities. Although it is too early to assess its impact on outcomes, the DU’s leadership is already well-regarded across the organisation. Positively, services involved in early projects – such as the current Temporary Accommodation (TA) initiative – report constructive collaboration and a data-driven approach.

The council is also working to embed a more consistent and structured approach to programme management. This has begun within the Housing & Sustainable Development Directorate, which has refined and adopted the Merton Approach to Projects (MAP) toolkit. An initial training package has been developed for wider use across the council, although rollout is still pending.

An underlying challenge for the council is to ensure priorities are properly resourced, including in terms of corporate functions. This was a recurring theme from staff across the organisation. The peer team considered the benefits from the council’s recent additional investment in communications and noted the work underway to recruit directorate HR business partners and drive forward organisational development (OD) activity. Nevertheless, the peer team also heard that back-office functions can sometimes constrain frontline delivery. Addressing this should be a key focus of the council’s forthcoming review of corporate services, to ensure enabling functions are aligned with strategic priorities and operational needs.

The peer team observed that the council has typically adopted a directorate-led approach to transformation, which often supports service-specific responsiveness but can reinforce siloed working and limit opportunities for integrated, cross-cutting change. The recent implementation of a cross-council administration and business support service marks a significant shift towards a more corporate way of working. The reorganisation was designed to improve working practices and support savings delivery. Despite the practical challenges often associated with cross-directorate implementation, the peer team heard that it remains on track to deliver £500,000 in annual savings from next year.

Recent organisational initiatives, including the introduction of the Delivery Unit and the use of a coordinated approach to programme management, will provide valuable insights into future ways of working. This learning, alongside the work to review and manage priorities, will be considered by the council as part of the development of options for the most appropriate delivery models and level of organisational capacity required. 

3.6 Economic Growth & External Engagement 

Recommendation 11: Engage more proactively with the private sector to encourage more inward investment and be clearer on Merton’s overall economic strategy.

Feedback

The council has taken positive steps to strengthen its approach to economic development but has not yet articulated its overall growth strategy. Since the last peer review, the council has adopted a new Local Plan, which now serves as the spatial framework guiding growth, investment and land use across the borough – replacing the previous Core Strategy adopted in 2011. 

The council has also been active in supporting growth work undertaken at a sub-regional level through the South London Partnership (SLP) – an alliance of five boroughs, including Merton. The council contributed to the development of the SLP’s Growth Ambitions Statement, launched in Wimbledon in July 2025. The Statement sets out a future growth vision and narrative for the sub-region, which will inform Merton’s own economic strategy.

The council is currently in the early stages of developing its economic development strategy. A baseline needs assessment is being commissioned, and an internal working group has been established to map existing business engagement activity and identify areas for improvement. This initial phase will be followed by work to define local strategic priorities, engage stakeholders, and design Merton-specific initiatives. The strategy is now expected to be completed during 2026/27, rather than within the current year.

As the council continues to develop its economic development strategy, it should consider how its internal structures and functions are organised to effectively support growth. The peer team observed that business engagement responsibilities are currently dispersed across multiple services, suggesting there may be opportunities for greater coordination or consolidation. It is also important for the council to objectively consider the economic value and impact of its current interventions. The council is understandably proud of its Borough of Sport (BoS) initiative, which includes a focus on the local sports and leisure economy. As part of the forthcoming BoS evaluation, assessing its economic impact will be essential to inform future resource allocation and strategic direction.

Encouragingly, the peer team received positive feedback on the early contributions of the council’s new executive director responsible for growth. While the broader strategy is still in development, pragmatic steps are already being taken to strengthen local partnerships. This includes the recent decision to join Merton’s Chamber of Commerce, which signals a proactive and outward-facing approach.

The LGA would like to thank the London Borough of Merton for undertaking an LGA CPC Progress Review. We appreciate that senior managerial and political leadership will want to reflect on these findings.

Under the umbrella of LGA sector-led improvement, there is an on-going offer of support to councils. The LGA is well placed to provide additional support, advice and guidance on a number of the areas identified for development and we would be happy to discuss this. 

Mona Sehgal (Principal Adviser) is the main point of contact between the authority and the Local Government Association (LGA).