Fair Funding Review 2.0
Councils are grappling with significant financial pressures, driving discussions on budget deficits and funding allocations.
Lambeth Council is currently projecting a nearly £11 million overspend for the current financial year and a £93 million budget gap over three years, as reported in July 2026. Councillor Zvikomborero Chihoro, Cabinet Member for Finance and Community Wealth Building, presented this financial forecast, which is primarily driven by escalating demand for adult social care services, alongside pressures from temporary accommodation and income shortfalls.
These financial challenges are part of a wider picture for local authorities, which often face funding pressures. For example, Croydon Council increased council tax by 4.99% in November 2025 to address a £1.4 billion debt burden and high demand for services. A report to the Scrutiny & Overview Committee in November 2025 noted that historic borrowing would cost £72 million in 2025-26.
Key facts
- Lambeth Council projects a nearly £11 million overspend for the current financial year. Source 1 Source 2
- Lambeth Council forecasts a £93 million budget gap over the next three years. Source 1 Source 2
- Lambeth's Cabinet discussed the financial forecast on 22 July 2026. Source 1 Source 2
- Croydon Council increased council tax by 4.99% in November 2025. Source
- Croydon Council faces a £1.4 billion debt burden. Source
About this summary
This summary was written automatically from our published stories and the council meeting records they draw on. It describes what councils have discussed and decided; it does not take a view on any decision. Each key fact links to the story it comes from. Updated 30 September 2026. Spotted a mistake? Email community@opencouncil.network.