Amid huge financial pressures after 14 years of austerity and structural underfunding from previous governments, and spiralling demand for vital front-line services, the council leadership has set out proposals to make savings of more than £99 million over the next four years.
The budget report, approved by the council’s Cabinet on Monday and recommended to the meeting of Full Council on 5th March, highlighted the impact the housing crisis was having on Lambeth’s finances: homeless households supported by the council have increased by 50% in the last two years, to 4,600 households, and the cost of housing homeless households in overnight accommodation is expected to reach £100m this year.
The report added that unprecedented demand for statutory services including adult and children’s social care, meant the council is required to fund £45.9m of additional growth next year to fund these statutory services alone. In line with most councils, and to meet the need to fund essential services, Lambeth also plans to raise Council Tax by 2.99%, and the adult social care precept by 2%.
Cllr Claire Holland, the Leader of Lambeth Council, said: “We need to be open with residents that this is the worst funding crisis that the council and local government have ever faced.
“We will continue to do all we can to protect the front-line services people rely on, but this will not be easy. A relentless focus on delivering a balanced budget will be needed to ensure the future financial stability of the council.”
The budget proposals will now be considered by all councillors, at Budget Council, on Wednesday March 5.
The meeting will also consider statutory written recommendations from the council’s External Audit 2023-24, under Schedule 7 of the Local Audit and Accountability Act 2014. This is pursuant to the need for Full Council to consider statutory written recommendation issued by its auditor Forvis Mazars, on 21st February 2025.
The auditor recommendations are as follows:
We recommend the Council takes immediate action to:
- identify additional savings and efficiencies to mitigate forecast overspends for 2024/25;
- ensure planned savings and efficiencies for 2025/26 are achievable and put in place cost control measures to avoid overspends;
- replenish the level of unallocated general fund and HRA reserves to those levels deemed prudent by the Section 151 officer;
- reduce the unfunded budget gap within the Council’s MTFS; and
- implement the key recommendation of the Kerslake report of bringing the provision of housing services through Homes for Lambeth back ‘in-house’ and determine the associated financial consequences and the impact on the level of reserves and the MTFS.
The recommendations, and the Council’s response to them, will be published in the Council meeting agenda papers online.
The meeting will be held on Wednesday 5th March 2025, in the Council Chamber, Lambeth Town Hall, 1 Brixton Hill, Brixton, London, SW2 1RW. The meeting will start at 7 pm.
