Southwark Council is seeking an urgent meeting with the Prime Minister to discuss the borough's significant financial challenges, which include a projected £102 million funding gap.

The call for a meeting with the head of government comes as council leaders attribute the substantial funding gap to the Labour government's so-called 'fair-funding' review. The motion Standing Up For Southwark states that Labour's austerity will hit Southwark hard, with officers predicting a financial black hole of £102 million. Furthermore, the motion Support Southwark residents, support Southwark staff notes that the impact of the Labour government's so-called Fair Funding Review, which Southwark Labour failed to adequately oppose, is leaving Southwark with a gap of £102 million.

A bar chart showing Southwark's total debt at 31/03/2025 and 31/03/2026, illustrating projected debt levels over several decades.
A bar chart showing Southwark's total debt at 31/03/2025 and 31/03/2026, illustrating projected debt levels over several decades.

During a Council Assembly meeting on Wednesday, 23 September 2026, councillors debated and passed a motion titled Standing Up For Southwark. This motion specifically called for the council's leadership to write to the Prime Minister, the Chancellor of the Exchequer, and the Secretary of State for Housing, Communities, and Local Government, to ask for an urgent meeting to discuss Southwark's financial position.

The motion also urged Southwark's five Labour MPs to meet with the council's leadership to discuss the impact of government cuts and to publicly call for a re-think of the Fair Funding settlement. The three MPs holding senior government positions are Miatta Fahnbulleh (Secretary of State for Energy Security and Net Zero), Florence Eshalomi (Minister of State for Homelessness, Democracy, Communities and Faith), and Ellie Reeves (Attorney General for England and Wales, Advocate General for Northern Ireland). The motion calls for these MPs to meet with the Leadership of the Joint Administration to discuss the impact of the government's unprecedented cuts on Southwark residents and to publicly call on Andy Burnham and his Government to undertake an urgent re-think of the so-called 'Fair Funding' settlement, in order to ensure that Southwark gets a fair deal. It highlighted that despite three MPs holding senior government roles, none have publicly opposed the austerity measures affecting the borough.

The council's new Joint Administration, formed by the Green and Liberal Democrat groups, inherited what they described as a grim legacy from the previous Labour administration, including the substantial funding gap. The council's assertion that the 'fair-funding' review is the primary cause of the funding gap is evident in multiple statements. For example, the motion Support Southwark residents, support Southwark staff states: The impact of the Labour government's so-called Fair Funding Review, which Southwark Labour failed to adequately oppose, which is leaving Southwark with a gap of £102 million. It also criticizes the previous administration for an irresponsible election budget that overspent by £34 million and failed to consider temporary accommodation pressures in its future forecasts and kicked difficult decisions down the road. This suggests that while the 'fair-funding' review is the main driver, the previous administration's financial management also contributed to the overall financial strain.

Councillors expressed concern that Labour's austerity policies would disproportionately affect vulnerable residents and put public services at risk. The motion stated that the funding gap represents the single largest round of austerity-forced savings in Southwark's history. The meeting information indicates that the savings imposed by the Labour government will put public services, often relied on by the most vulnerable, at risk in inner-London authorities. This is mentioned in the context of the £102 million funding gap. The motion Support Southwark residents, support Southwark staff also states: To do everything in our power to fight back against Labour's brutal austerity that is starving Southwark of the resources it desperately needs.

The 'austerity measures' are referred to as the Labour government's so-called 'fair-funding' review and Labour's brutal austerity . The historical context is that these measures are seen as a political choice by the Labour government that is redistributing funding away from Southwark. The motion Standing Up For Southwark states: That Labour's austerity is a political choice, not a necessity the overall amount of money sent to councils in England is not shrinking, rather Southwark's funding is being redistributed at our expense.

The council's leadership has committed to being loud and bold in our asks of this Labour government and to be honest about the financial challenges we face, tackle them together with the people of Southwark, and stand firm in our refusal to accept declining standards as inevitable. They also plan to engage in a major borough-wide campaign engaging with residents ahead of the budget, ensuring their views run through the heart of council decision-making. Furthermore, the motion Support Southwark residents, support Southwark staff resolves To do everything in our power to fight back against Labour's brutal austerity that is starving Southwark of the resources it desperately needs.

Read the full motion Standing Up For Southwark here. Read the printed minutes of the Council Assembly meeting here.