Lambeth Council is set to reduce its senior leadership team, a move projected to save the authority £1 million annually. The decision comes as the council grapples with significant financial pressures and aims to streamline its operations.
The Lambeth Council Corporate Committee met on Thursday 24 July 2025, to discuss and endorse the proposed changes to the senior leadership structure. The proposals, detailed in the Final Corporate Committee Report Senior Leadership Restructure July 2025, which are subject to consultation, include reducing the number of directorates from seven to five, realigning director roles, and eliminating three director posts.
The restructuring aims to create a more efficient and financially sustainable organisation, aligning with the council's broader strategic objectives outlined in its Lambeth 2030 plan. The plan focuses on making Lambeth a borough with social and climate justice at its heart.
At the meeting, Louise Searle, Interim Director of Human Resources and Organisation Development, explained that the consultation on the proposed changes closed on 18 July 2025, and the council is now reviewing the feedback. She stated that the council is still on track for a 1 October launch of the new structure. She also noted that the savings were for a full year, and that there would be a proportional saving this year.
Ms. Searle also addressed concerns about redundancy and pension costs associated with the restructure. While the report acknowledges potential redundancy and pension costs, it states that a precise figure is difficult to determine until ring-fenced interviews are completed. The worst-case scenario cost will be provided to the committee. The finance team is aware of the affected staff and their potential redundancy and pension strain.
Councillor questions also focused on the budget for savings from the restructure. Ms. Searle confirmed that the savings were in addition to the £14 million already targeted and that the timeline for the next levels of the restructure would be relatively quick to ensure the council could achieve those savings in the 2026-27 financial year. Following the senior leadership restructure on October 1st, the council plans to move quite quickly
on the next two tiers to achieve full-year savings for 2026-27.
Councillor Linda Bray asked for assurance that the restructure would actually save money, considering redundancy payments and the potential need to employ other people to take up the workload of those leaving. Ms. Searle responded that the council was very clear about the savings that could be made at the senior level and that controls would be put in place to prevent the creep
of more senior positions in the future.
The Corporate Committee concluded the item by noting the report and requesting an email update on the costs associated with the restructure.
