£50m exceptional financial support agreed for Lambeth LBC

The Government has agreed in principle exceptional financial support of up to £50m for Lambeth LBC for 2023-24 and 2024-25.

Lambeth joins 19 other local authorities which have agreed in principle capitalization directions.

The council’s financial difficulties are largely linked to the costs associated with a compensation scheme for historical child abuse cases.

A report by the Chartered Institute of Public Finance and Accountancy found that Lambeth had “robust arrangements and processes to ensure sound financial and risk management and sustainability”.

However, it recommended the board “reinforce the need to deliver on its savings program and continue to hold directors and leadership members to account for delivery”.

Last year, Lambeth’s leader Claire Holland warned that the sector’s finances were now at a “tipping point”.