Lambeth: Scale of huge budget challenge laid out

These savings must be found despite increased demand for council services, rising inflation meaning services cost more to run and the huge public sector consequences of the extended period of government austerity policies.

Lambeth is also facing the national cost of living crisis, which continues to hit those with the least, the high cost of housing and a severe shortage of affordable homes, which particularly affects London’s local authorities.

Lambeth Council has already had to find savings of almost £30 million this financial year, which are being made through efficiency gains, revenue generation through measures including bringing leisure services back in-house, changing fees and charges, protecting in at the same time key services for our most vulnerable residents. .

Cllr David Amos, Lambeth’s Cabinet Member for Finance, said: “We face an incredibly difficult challenge in setting a balanced budget because of the amount of savings we need to find. The council provides hundreds of services to Lambeth residents and plays a key role in supporting the most vulnerable in our community.

“We will continue to do everything we can to protect these services while we look for new ways to be more efficient, make additional savings and continue our revenue generation efforts. This is a challenge that is becoming increasingly difficult as we have faced this challenge for an ongoing period – but one that we are determined to meet.

“Of course there was a general election this month which brought a new government back into office. This government inherited a struggling economy after Brexit, public services in crisis and a huge public debt burden. In addition, councils in England face a funding shortfall of more than £6 billion over the next two years, according to the analysis.

“We are committed to working with the new government to address the challenges facing the public sector, while recognizing that there is no quick fix here after a long-term national failure to protect services. I am optimistic that the new government is committed to measures that will improve the outlook for the country and which in turn will improve the situation of frontline services like those that Lambeth Council provides.”

The ‘July Financial Planning and Medium Term Financial Strategy 2024/25 to 2028/29’ will be considered by Lambeth Council’s Cabinet within 10 days on 22 July. Visit moderngov.lambeth.gov.uk to read the full report.