The Cabinet approved an increase to council tenants' rent of 2.7% in line with the government’s guideline rent formula, approved the allocation of Strategic Community Infrastructure Levy funding to four projects, and made a decision to use compulsory purchase powers to acquire the remaining leaseholder properties at the Tustin Estate in order to allow the second phase of its redevelopment to proceed. The cabinet also noted motions on a range of issues referred from the full council meeting.

Housing Revenue Account - Final Rent and Charges Report 2025-26

The cabinet approved the following increases to rents and charges for council tenants from 7 April 2025.

• Rent: 2.7%
• Estate Cleaning: 6.9%
• Communal Lighting: 10.7%
• Sheltered and Supported Housing: 4.3%
• Garages: 5%

A 2.7% increase to shared ownership rents was also approved.

The report to cabinet noted that these increases were necessary to ensure that the Housing Revenue Account is able to meet the cost of improving and maintaining council homes. The report also noted that council tenants would be consulted on the proposals. The report highlighted the financial challenges facing the Housing Revenue Account, including government policy decisions and macro-economic factors. These include:

• The cumulative effect of a four-year rent reduction (1% per year) imposed by the government between 2016-17 and 2019-20.
• A cap on rents of 7% imposed by government from April 2023.
• Unfunded burdens arising from new fire and building safety legislation.
• Construction industry inflation.

The cabinet also approved the phasing out of a concessionary rate for garages for registered disabled and elderly residents over 70 years of age. The concessionary rate will be reduced by 50% from April 2025 and removed completely in April 2026 for all residents who do not hold a blue badge.¹

Council Tax Base 2025-26

The cabinet approved a council tax base of 112,357 Band D equivalent dwellings for 2025-26 and agreed to recommend a number of discounts and exemptions to the full council.

The cabinet also agreed to recommend that the council continue to charge the maximum permitted premium of 300% on properties that have been empty for at least 10 years and to charge a premium of 100% on second homes from 2025-26. These recommendations will go to the full council for a final decision.

Policy and Resources: Revenue Monitoring Report 2024-25

The cabinet noted a projected overspend in the General Fund for 2024-25 of £17.8m. The report to cabinet highlighted a number of budget pressures, including:

• Demand for temporary accommodation.
• Support for people with ‘No Recourse to Public Funds’.²
• Increased demand for adult social care packages.
• Increased cost of placements for children with complex needs.
• A shortage of foster placements.

The cabinet also noted a projected overspend of £8.2m in the Housing Revenue Account, and that in-year pressures in the Dedicated Schools Grant (DSG) were forecast at £0.8m.

Streets for People Delivery Plan

The cabinet approved the Streets for People Delivery Plan for 2025-26. The Delivery Plan sets out how the council will deliver on its commitments to make Southwark’s streets cleaner, greener, and safer. The plan was developed following a consultation with residents and builds on the council’s Southwark 2030 strategy.

Councillor McAsh, Cabinet Member for Clean Air, Streets and Waste said:

“This plan is about looking ahead to what we can achieve by 2030. To help you understand how these changes could impact your area, we’ve created maps showing what we’ll be doing both across Southwark and in local wards, showcasing proposed improvements.”

The plan will be delivered in five zones in year one:

• Zone A - around Great Suffolk Street.
• Zone B - around Bermondsey Street.
• Zone F - around Bermondsey Spa.
• Zone I - around Wyndham Road.
• Zone J - the Brunswick Park and Goldsmiths Road area and around East Street market.

The Delivery Plan includes the following measures:

• More trees and green spaces.
• More accessible pavements.
• Less traffic.
• Better lighting.
• Traffic calming.
• Segregated cycling.
• Cycle hangars.
• Pedestrian crossings.

The cabinet also approved a delegation to Councillor McAsh to approve revisions to the borough's traffic circulation plan.

Allocations for Strategic Community Infrastructure Levy Funding

The cabinet agreed to allocate Strategic Community Infrastructure Levy funding to four projects:

• £1,500,000 towards the fit out of the LGBTQ+ space at Bankside Yards.
• £2,373,563 towards the development of 634-636 Old Kent Road for enabling works for the Bakerloo Line Extension (BLE).
• £30,000 towards the Bakerloo Line Extension Funding Study.
• £50,000 towards design work to improve accessibility at Nunhead Station.

Tustin Estate update and phase 2 compulsory purchase order

The cabinet approved the use of compulsory purchase powers to acquire the 15 remaining leaseholder properties in Heversham House on the Tustin Estate. The decision was made to enable the second phase of the estate's redevelopment to proceed.

Councillor Dennis, Cabinet Member for New Homes and Sustainable Development, said that the council had successfully acquired 13 leaseholder interests in Heversham House and was taking and will continue to take reasonable steps to acquire remaining leaseholder interests situated within Heversham House by agreement.

The cabinet report noted that the council was contractually obliged to secure vacant possession of Heversham House in order for the demolition works to proceed and that planning permission for the second phase of the redevelopment was expected to be granted in January 2025.

The cabinet also approved the delegation of authority to the Director of Planning and Growth, in consultation with the Managing Director of Southwark Construction, to take all necessary steps to secure the making, confirmation, and implementation of the Compulsory Purchase Order (CPO).

Motions referred from council assembly

The cabinet noted the following motions referred from the council assembly meeting held on 20 November 2024:

• The climate emergency in Southwark: a fair transition to net zero
• Supporting older people this winter
• Rethinking winter fuel payment cuts
• Right to grow
• Supporting the Climate and Nature Bill
• Support renters in Southwark.

The cabinet did not make any decisions on the motions at this meeting.