Lambeth Council is set to increase Council Tax by 4.99% for the upcoming financial year, with a 2.99% rise in general Council Tax and a further 2.00% increase for the Adult Social Care precept. The decision was made during a Cabinet meeting on Monday, February 23, 2026, where councillors discussed the proposed revenue and capital budgets for 2026/27 alongside the Medium-Term Financial Strategy for 2026/27 to 2029/30. The full details of the budget proposals can be found in the Revenue and Capital Budget 2026/27 and Medium-Term Financial Strategy 2026/27 to 2029/30.
Councillor Judith Cavanagh, Acting Cabinet Member for Finance, introduced the Quarter 3 2025/26 Budget Monitoring Report, highlighting significant financial pressures faced by the council. These include real-terms cuts in government funding since 2010, which have reduced Lambeth Council's funding by more than 28%, while demand for services has increased and inflation has reached a generational high. 
These financial pressures are exacerbated by rising temporary accommodation costs, with spend expected to reach nearly £105m this year, and increasing demand in adult and children's social care. The cost of providing statutory services is outstripping available funding, necessitating considerable work to achieve a sustainable balanced budget and Medium-Term Financial Strategy.
To balance the budget for 2026/27, the council plans to implement savings and income-generating proposals totalling over £99 million. These measures aim to stabilise the council's financial position while protecting priority services where possible. The budget includes the council's updated capital strategy, focusing on long-term sustainability and reducing debt servicing to support investment towards borough plan priorities. The General Fund Capital Programme for 2026/27 is estimated at £74.475m, funded by grants, S106/CIL, and borrowing. The HRA Capital Investment Programme for 2026/27 is £64.355m, funded by grants, HRA resources, and borrowing.
The capital programme for next year will see investment in schools, highways, public grounds, housing stock, and the delivery of the Lambeth New Homes programme, aiming to deliver over 3,000 new homes.
Despite the Council Tax increase, Lambeth Council has committed significant funding to provide cost-of-living support to residents over the past four years. This includes expanding free school meals out of term time, providing emergency household grants for those facing debt crises, and commissioning advice services to help families secure their future. The Council Tax Support Scheme for 2026/27 will continue to support tens of thousands of households with an investment of around £27 million. This scheme is designed to be affordable while targeting support to those most in need, with the level of support based on income and household circumstances, meeting a maximum of 73.5% of working-age recipients' bills. Further details on the Council Tax Support Scheme can be found here.
Councillor Claire Holland, Leader of the Council, acknowledged the difficult decisions ahead but expressed pride in the budget's focus on delivering good public services that local people care about, including looking after vulnerable children, protecting spending on street cleaning, and maintaining London-leading services to protect women and girls who have survived domestic abuse and violence. The council is also committed to its Borough of Sanctuary strategy, aiming to create a welcoming environment for all residents. 
