Southwark Council is grappling with a significant £102 million funding gap, a situation exacerbated by the Labour government's fair-funding
review. This financial shortfall, which is expected to lead to austerity-forced savings
that will put public services, often relied on by the most vulnerable, at risk in inner-London authorities,
was a central point of discussion at the Council Assembly meeting on Wednesday, 23 September 2026.
The council's leadership has stated that Labour's austerity is a political choice, not a necessity,
arguing that while the overall amount of money sent to councils in England is not shrinking, Southwark's funding is being redistributed at our expense.
Officers predict this will result in the single largest round of austerity-forced savings in Southwark's history.
A motion passed during the assembly acknowledged the diligence of council staff and criticised the previous Labour administration for its handling of the funding gap and an irresponsible election budget
that overspent by £34 million. This motion was referred to the executive for consideration.
During Members' Question Time, councillors raised concerns about the council's medium-term financial strategy. The executive has committed to working with residents to tackle the challenges and be honest about their scale. They 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.
The motion also calls for the executive to continue their work creating a fair and balanced budget that can deliver the savings being forced upon the Council whilst continuing to protect our most vulnerable residents and our key services.
The council aims to publish a summary of the results, and be clear about how resident engagement has shaped the budget.
Furthermore, they pledge to do everything in our power to fight back against Labour's brutal austerity that is starving Southwark of the resources it desperately needs.
Further details on the council's financial situation and the agenda for the meeting can be found in the Public reports pack and the Agenda frontsheet.
