Lewisham Council has approved its budget for the upcoming financial year, which includes a significant capital investment programme and a commitment to a Council Tax cap of 5%. The formal adoption of the Council Budget for 2026/27 took place at the Mayor and Cabinet meeting on Wednesday, 11 February 2026.

The budget assumes a 4.99% increase in Council Tax, a figure aligned with central government funding assumptions and the addition of the GLA precept, resulting in an overall bill rise of just under five percent. Councillor Amanda De Ryk, Cabinet Member for Finance, Resources and Procurement, confirmed this, stating, As Mayor Dacus has said, we the budget assumes a four point nine nine percent increase. Our funding from central government assumes that increase, which we will add the GLA preset to, which means the overall bills will rise by just under five percent.

A substantial portion of the budget, over £600 million, is allocated to housing over the next five years. This investment will focus on building new council homes, tackling damp and mould in existing social housing, improving energy efficiency, and ensuring the safety and decency of the current social housing stock. Councillor Will Cooper, Cabinet Member for Better Homes, Neighbourhoods and Homelessness, highlighted this commitment, stating, our unwavering commitment of £148.7 million in the next year and over £600 million planned for the next five years to build new council homes, tackle damp mould and disrepair, meet new building safety and compliant duties, and improve energy efficiency and reduce carbon emissions as well.

A pie chart illustrating the allocation of Lewisham Council's budget across various services, with Adult Social Care and Children's Social Care Services representing the largest portions.
Lewisham Council Budget Allocation by Service

Mayor Brenda Dacres outlined the council's dedication to strong communities, fairness, and resilience. This commitment is being maintained despite a real-terms reduction in spending power per person of 17% since 2010. Mayor Dacres explained, For many years, local government has been asked to do more with less. Since 2010, Luzham has experienced a 17% real terms reduction in spending power per person. At the same time, demand for services has continued to rise, particularly in social care, housing, and support for vulnerable families, alongside population growth and rising costs. She added, Lewisham has remained resilient through strong financial management, early planning, and close partnerships with our communities. We have continued to protect services and support residents.

The budget aims to deliver approximately £35 million of savings over the next three years. The council is approaching this challenge in a careful, responsible, and values-driven way with the goal of put[ting] the Council on secure financial footing while continuing to protect the services that matter most to residents, according to Mayor Dacres.

A choropleth map of Lewisham showing the percentage of residents over 65 by area, based on the 2021 Census data.
Lewisham Residents Over 65 by Area

Beyond the Council Tax cap, the council is also aiming to bring the collection rate down to 95% due to ongoing cost of living pressures affecting residents. The specific breakdown of the £600 million housing investment across the five-year period is not detailed in the meeting information, nor are specific annual targets for these interventions.

Regarding the issue of damp and mould in existing social housing, the council is continuing its action plan. This includes undertaking surveys to identify issues and then taking repair and follow-up actions to resolve them. However, a specific timeline for these interventions has not been detailed. The full budget report can be found here: 2026-27 Budget Report MC.