Council’s call for ‘urgent’ support ahead of Government’s first budget

Councils need “urgent” help to cope with skyrocketing demand for housing and social care, a local authority has warned the government ahead of its first budget.

In a letter to Chancellor Rachel Reeves, Lambeth council has called on the Government to address the “demand crisis” confronting councils and fix the local government financial system to provide “fairer funding” based on need.

In Lambeth alone, long-term funding reductions and the rising bill for providing temporary accommodation (TA) for homeless people has left the council facing a £70million deficit over the next four years.

The number of families housed in temporary accommodation by Lambeth has risen to 4,600 – up by 1,300 in just two years – pushing the council’s bill for TA up to £28million this year.

At the same time, government cuts in recent years have seen £500million stripped from the Housing Revenue Account, which Lambeth says has limited its “potential to provide fit-for-purpose homes”.

Cllr Claire Holland, leader of Lambeth council, said: “The housing crisis is a tragedy for so many families in Lambeth who deserve a permanent home. Sadly, the scale of the demand in boroughs like Lambeth makes that impossible for many.

“It isn’t sustainable for those families, or for councils like Lambeth, for this huge demand to fall on a small number of local areas. We need a national solution to this crisis.”

Chancellor Reeves has said that her first Budget, on October 30, “will involve taking difficult decisions to meet our fiscal rules across spending, welfare and tax”.

But, Lambeth’s submission to the Treasury said local government faces “urgent and debilitating crises” which threaten the future of the sector. 

Recent analysis by the Local Government Association estimated a £700millon budget gap across London councils alone, with that figure jumping to £2.3billion nationally.

A Lambeth spokesman said: “These numbers are largely driven by factors out of local government control.”

Cllr Holland said: “The government must provide urgent support to enable local government to ensure councils can continue to provide vital support to those most vulnerable and confirm their long-term financial sustainability.”

The Ministry of Housing Communities and Local Government has been approached for comment.

Pictured top: Lambeth council HQ (Picture: Robert Firth)