Lambeth Council has approved its final statement of accounts for the 2024-25 financial year, a significant step in its ongoing financial recovery. The Corporate Committee met on Thursday, March 26, 2026, to review and endorse the accounts, which received an audit opinion ahead of the national deadline. The full reports pack can be found here.
The approval comes as the council continues to navigate significant financial pressures, including demand in social care and temporary accommodation. The housing crisis has led to unprecedented levels of demand for temporary accommodation across London, significantly impacting boroughs' budgets. Additionally, demand pressures are high in the key areas of adults' and children's social care.
A key development highlighted in the meeting was the council's successful application for £116 million in Exceptional Financial Support (EFS) from the government. This funding is crucial for rebuilding reserves, addressing historical bad debt provisions, and balancing the budget for the upcoming financial year. The EFS will address historical issues in relation to bad debt provisions
with an estimated value of £16m.
Zena Cooke, Corporate Director of Resources, explained that the EFS is planned to be funded through an asset sale
and a disposals programme
rather than borrowing. This strategy aims to avoid borrowing over the medium term, although the council has prudently built potential borrowing costs into its Medium-Term Financial Strategy (MTFS) as a contingency. The council is working through this is about where it's appropriate that we can get capital receipt because actually not economic for us to pursue or is surplus to our requirements.
The Housing Revenue Account (HRA) has an identified pipeline of assets for disposal, pending member confirmation. For the General Fund, disposals were already planned and progressed as part of the budget. An asset management strategy is in place to guide these decisions, with a prioritisation of assets based on their surplus status and strategic value. The EFS funding is approved for the three years 2024-25 through to 2026-27, with declining amounts expected each year.
The EFS funding will also support the rebuilding of General Balance reserves to the level recommended by the S151 officer, estimated at £40m to £45m. The HRA also has a target to exceed 10% of turnover for its reserves by 2030.
Glenn Hammons, Interim Director of Finance, provided an update on the 2025-26 accounts closedown process, noting that work is well underway with a reduced timetable and escalation procedures in place. He also highlighted the establishment of a Balance Sheet Review Working Group to enhance the quality and timeliness of future accounts. An update on the closedown and improvement plan can be found in Appendix One - Closedown and Improvement Plan Update March 2026.
Despite the progress, challenges remain. Councillor Jackie Meldrum raised concerns about managing demand pressures in social care and temporary accommodation. The council confirmed that an asset management strategy is in place, with a prioritization of assets for disposal based on their surplus status and strategic value.
