Savings not possible without impact on vital services, Lambeth says ahead of budget decision
Details of Lambeth council’s budget have been published today, setting out more than £99million in savings over the next four years.
The budget paper, which will be considered by the council’s cabinet this afternoon, aims to stabilise the local authority’s “perilous financial future” with measures including tax increases and cuts to services.
If agreed by cabinet the budget will be considered on March 5, at Budget Council.
To meet the need to fund essential services, Lambeth council will raise Council Tax by 4.99 per cent.
The increase, set to come into effect in April 2025, includes a 2.99 per cent tax increase and a two per cent increase in the Adult Social Care (ASC) precept.
In addition to the Council Tax premium collected on empty homes, the council will also introduce a Council Tax premium on second homes for 2025/26.
Cllr Claire Holland, Leader of Lambeth council, said: “Although this will maintain Lambeth’s council Tax rate as one of the lowest in the UK, we know significant challenges remain for some of our most vulnerable residents.
“Support for the most financially vulnerable will continue to be available through the Lambeth’s Council Tax Support scheme, alongside the council’s Cost of Living support programme.”
Rising demand and the cost of services, such as adult social care and children’s services, are also driving council’s overspend.
This means the local authority must make £46.3million in savings in 2025/26 and a further £49.8million over the next four years to balance its budget.
Cllr Holland said: “This is now the worst funding crisis this council, and others across the country, have ever faced. We need to be open with residents that saving this amount isn’t possible without having an impact on the services people rely on.
“Where possible, we have focused on finding savings through being more efficient, putting forward income generating proposals, and increasing our fees and charges in a way that’s fair within the current challenging financial situation.”
Unprecedented demand for services such as temporary accommodation, along with adult and children’s social care, will require £45.9million of further funding next year, the council said.
The number of homeless households supported by Lambeth council has increased by 50 per cent in the last two years to 4,600 households.
The cost of housing homeless households in overnight accommodation is expected to reach £100million this year, meaning that the council has spent £30million more than it budgeted for.
Cllr Holland said: “Our ability to cope with the situation has been worn down by fourteen years of austerity policies and a succession of government failures and delays in delivering much needed reforms.
“That includes failures to address the promised reforms to adult social care, a failure to build the housing this country so desperately needs and a failure to properly fund front-line services our residents depend on.”
In addition to these savings, housing services – which are funded through a separate council housing account – are under major pressure.
The council said it is in discussions with the Ministry for Housing, Communities and Local Government to determine what actions will need to be taken to balance the budget over the next few years.
Cllr Holland said: “The local government financial settlement is an essential first step in starting to rebuild local services that have been stripped away by austerity decisions by national governments over 14 years.
“We will continue to work with government to address the financial challenges local government faces. This is particularly acute for councils in London such as Lambeth since we are on the frontline and bear the brunt of the national housing crisis.”
To read the full report visit moderngov.lambeth.gov.uk.
Pictured top: West Norwood neighbourhood (Picture: Lambeth council)