Lambeth Council has reviewed its financial performance for the first quarter of 2025-26, revealing significant financial challenges stemming from rising demand for statutory services, particularly temporary accommodation, driven by factors such as post-COVID pressures, Brexit, and the cost of living crisis. During the Cabinet meeting on Monday 22 September 2025, councillors discussed the Quarter 1 Financial Performance Report 2025-26.
Councillor Claire Holland, Leader of the Council, acknowledged the severe financial pressures facing Lambeth, attributing them to rising demand for statutory services, particularly temporary accommodation. She noted that the council is projecting a £20 million overspend this year due to these ongoing pressures. Lambeth's financial position is extremely challenging after 14 years of structural underfunding, rising costs and increased demand post-COVID, Brexit and the cost of living crisis,
she stated.
Despite these challenges, Councillor Holland-Lever highlighted that over 80% of planned savings for 2025-26 are on track, with any shortfalls being addressed within directorates. She also mentioned a council-wide transformation programme aimed at delivering savings and improving efficiency. This programme includes measures such as reducing direct mail (already saving over £1 million), a recruitment freeze, ending non-essential spending, and reviewing capital investments. The council is also exploring opportunities to raise capital receipts to further support financial sustainability and service improvements.
Councillor Rosina Chowdhury, Deputy Leader of the Council (Sustainable Lambeth and Clean Air), inquired about the confidence in the full delivery of the savings. Officers responded that a rigorous monitoring process is in place, with regular reviews involving service and finance colleagues. Savings are only marked as delivered with verifiable evidence that the saving is on track and has been completed.
