But the council has also appealed for more help from the Chancellor of the Exchequer, Rachel Reeves, to repair the damage caused by 14 years of austerity policies under previous governments.
Council Leader Claire Holland said the Budget package announced today had begun to tackle a number of longstanding problems confronting Lambeth and local authorities across the country, including additional funding for affordable housing, schools and social care.
The council also welcomed the £1 billion announced for the Household Support Fund and Discretionary Housing Payments, funding that the council has previously used to support low-income families with free school meals and cost of living payments.
Ahead of the statement, councils had appealed for immediate action to address the “dire financial situation” besetting local government following years of funding restrictions – with housing and homelessness a particular concern.
Ms Reeves today acknowledged the need to work alongside councils “to repair our public services”, and promised a “significant real-terms funding increase for local government next year”.
She set out a series of proposals to address the situation councils found themselves in – including:
- £1.3bn of additional grant funding to deliver essential services
- £230m to tackle homelessness and rough sleeping
- Local authorities will be able to keep all the money from homes sold under Right to Buy, to reinvest in council housing – plus a reduction in right-to-buy discounts
- A £2.3bn increase in core school budget, to help hire thousands of teachers
- £6.7bn capital investment, including £1.4bn to rebuild 500 schools
Cllr Holland said: “We have been engaging with the Government to set out the scale of the very real crisis councils up and down this country are facing after 14 years of central government austerity policies, and it’s clear that they’ve listened to us. This Budget shows that they’re ready to start tackling the crisis we’re all facing as we strive to provide the services our residents depend on.
“We need action to rescue council finances from a long-term funding crisis that has left Lambeth needing to make over £30million in savings this year, and £70million over the next four years. In Lambeth, the astronomical housing pressures we’re facing mean the budget for providing temporary accommodation for homeless people is £28million overspent.
“So, we welcome measures to tackle the housing market – such as support for tackling homelessness, allowing us to use all the money from Right to Buy sales to invest in council homes, and the new investment in building affordable housing.
“We’re also heartened by the promise of more money for key council services, including schools and social care. These are vital steps towards repairing the damage wrought by years of underfunding of councils and the critical services they provide. But we need to make bigger strides – and more quickly – if we are to reverse the damage and give people the services they deserve.”
Ms Reeves’ Budget announcements on local government services also included a pledge of £600m in grant funding for social care, a tripling of investment in breakfast clubs, an extra £300m for further education, and a £1bn uplift in funding for Special Educational Needs and Disabilities (SEND).
