Southwark Council is seeking an urgent meeting with the Prime Minister to discuss the borough's significant financial challenges, which are projected to create a £102 million funding gap.
The call for a meeting with the head of government comes as council members attribute this shortfall to the Labour government's fair-funding
review. This funding gap is expected to place considerable strain on public services, particularly those relied upon by the most vulnerable in inner-London authorities.
The issue was raised during a Council Assembly meeting on Wednesday, September 23, 2026. A motion passed by the assembly specifically called for the leadership of the council to write to the Prime Minister, the Chancellor of the Exchequer, and the Secretary of State for Housing, Communities, and Local Government to request this urgent discussion. The projected funding gap is expected to materialise over the coming years,
with officers predicting a financial black hole of £102 million.
The motion also highlighted that three of Southwark's five Labour MPs hold senior government positions: 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). Despite these roles, the motion states that no Southwark Labour MP has yet publicly spoken against Labour's new policy of austerity which will do massive harm to Southwark and its residents.
The MPs have been urged 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.
The council's new Joint Administration, formed by the Green and Liberal Democrat groups, has criticised the previous Labour administration for failing to adequately challenge the funding review. According to the meeting documents, the previous administration failed to adequately oppose
the Labour government's fair-funding
review, which is leaving Southwark with the significant funding gap. The current administration also points to an irresponsible election budget
from the previous Labour leadership that reportedly overspent by £34 million. They argue that this inherited financial situation necessitates direct engagement with the national government.
The meeting documents refer to national austerity measures
and Labour's brutal austerity
as impacting Southwark. Motion 6, Standing Up For Southwark,
specifically states: Most detrimentally in Southwark, Labour has committed to a policy of deep austerity for many Inner London boroughs.
It further elaborates 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.
While the term austerity measures
is used, specific details on how these differ from general budget cuts are not provided, beyond the implication that they are politically driven and involve redistribution of funds at Southwark's expense.
Further details on the council's financial challenges can be found in the Agenda frontsheet, Printed minutes, Public reports pack, and Supplemental Agenda no. 1.
