The Cabinet of Southwark Council made a number of decisions at its meeting, including increases to council rents and tax, approval for schemes to improve streets in the borough and support residents with the cost of living, and the allocation of funding for several major regeneration schemes. The Cabinet also agreed to begin the process of making a compulsory purchase order for properties on the Tustin Estate as part of a major regeneration scheme in the area.

Tustin Estate Compulsory Purchase Order

The Cabinet agreed to begin the process of making a compulsory purchase order for 15 leaseholder properties on the Tustin Estate.

That compulsory purchase powers under Section 226(1)(a) of the Town and Country Planning Act 1990 (“the 1990 Act”) and section 13 of the Local Government (Miscellaneous Provisions) Act 1976 for the acquisition of all land and interests (which are not already owned by the council) within the area of land shown edged black and bold on the plan at Appendix 2 of the report (“the CPO Land”) for the purposes of facilitating the redevelopment, development and improvement of the land and securing the delivery of new homes on the site in line with the planning application for Phase 2 and thereby securing the continued redevelopment of the Tustin Estate, be agreed.

The decision was made to allow the council to take ownership of all of the properties in the second phase of a major regeneration project in order to allow the demolition of existing buildings and the start of construction of new homes.

The council has appointed Linkcity to develop the site. The second phase of the scheme will deliver 295 new homes and is expected to begin in Summer 2025.

Council Tax

The Council approved an increase of 2.7% to the average band D council tax bill, taking the average bill to £1,261.92 before the addition of precepts for the Greater London Authority and the St Mary Newington Parish Council.

The council also approved a schedule of discounts and exemptions to council tax, including a 100% discount on empty properties undergoing major works for up to 12 months, a 50% discount for the first 12 months of a property being empty and unfurnished, and full exemptions for properties left empty after someone has died or moved into care. The council voted to maintain its current level of support for care leavers aged 18 to 24 and Southwark’s foster carers by continuing to offer them a discretionary reduction of up to 100% on their council tax bills.

The council voted to change its assumed council tax collection rate to 96.5%, meaning it will base its budget on the assumption that it will collect only 96.5% of all council tax owed.

Housing Revenue Account

The Council approved an increase of 2.7% to council tenants' rent from April 2025. This will mean that the average council tenant will pay £112.28 per week in rent.

The council's decision on rent levels was informed by the government’s guideline rent formula of the Consumer Price Index plus 1%, which for 2025-26 allows councils to raise rents by a maximum of 7.5%. The council's own analysis shows that it needs to invest £4 billion over the next 30 years to bring its housing stock up to the Decent Homes Standard.

That the rent increase of 2.7% for all directly and tenant managed (TMO) housing stock within the council’s Housing Revenue Account. This is in accordance with the government’s guideline rent formula of CPI+1% (based on September 2024 Consumer Price Index) as set out at paragraphs 14-16 of the report with effect from 7 April 2025.

The council also voted to increase service charges for tenants by varying amounts. The largest increase, of 10%, will be applied to charges for lift maintenance, with the smallest, of 5%, being applied to estate cleaning.

The council resolved to freeze charges on its heat networks, which provide heating and hot water to homes on several estates across the borough, for another year.

Streets for People

The Cabinet approved a £5.8 million plan to make streets in five zones of the borough safer and more attractive.

The Streets for People plan aims to encourage more people to walk, cycle and use public transport and make Southwark's streets healthier and more pleasant places to spend time. Improvements will include new pedestrian crossings, wider pavements, more cycle parking and new trees and plants.

The five zones included in the plan are:

• South Bermondsey
• Rotherhithe
• Nunhead Village and Peckham Rye
• East Walworth
• Old Kent Road

The plan approved by the Cabinet was informed by the findings of an extensive consultation with residents undertaken between September 2023 and March 2024.

Strategic Community Infrastructure Levy

The Cabinet approved the following allocations of funding from the Strategic Community Infrastructure Levy:

• £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.
• £30,000 towards the Bakerloo Line Extension Funding Study.
• £50,000 towards design work to improve accessibility at Nunhead Station.

The Community Infrastructure Levy is a charge that local authorities can choose to levy on new developments in their area. It is used to fund infrastructure that is needed to support the development of the area.

Motions Referred from Council Assembly

The Cabinet considered four motions referred from the Council Assembly:

• 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 voted to approve all of these motions, meaning that it is now council policy to support the aims and recommendations of the motions.