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/02, Cabinet - Monday 24 February 2025 5.00 pm

February 24, 2025 View on council website Watch video of meeting
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Summary

The Cabinet agreed to note the Local Government Association Corporate Peer Challenge Report and recommendations, agree to the Lambeth Corporate Peer Challenge Action Plan 2025 and note that a Progress Review will take place later in 2025. The Cabinet also agreed to recommend to Council to note or adopt the recommendations in the Revenue and Capital Budget 2025/26 and Medium-Term Financial Strategy 2025/6 to 2028/29 and to approve the Age-Friendly Lambeth Action Plan 2024-2027. The Cabinet noted the financial position of the council at the end of Quarter 3.

Revenue and Capital Budget 2025/26

The Council is facing a challenging financial situation due to structural underfunding from central government, inflationary pressures, and demand-led pressures on services, particularly temporary accommodation. To address this the Council is proposing £46.3 million of savings and income generation in 2025/26.

The most significant proposals to the public are the raising of council tax and changes to the Council Tax Support Scheme:

Council Tax Changes

In 2025/26 Council Tax will increase by 4.99%. 2.99% of this increase will go towards general Council Tax and the remaining 2% will be used for the Adult Social Care Precept.

A new Council Tax premium on second homes will be introduced from April 2025.

Council Tax Support Scheme Changes

From April 2025 the maximum discount available through the Council Tax Support Scheme will reduce from 100% to 80%. The following groups will be exempt from the change:

  • Recipients with a disability
  • Recipients affected by the overall benefit cap
  • War widows and widowers
  • Carers

The Council acknowledged the potential impact these changes will have on residents and highlighted that mitigation is in place, including the Council Tax hardship scheme, which has a budget of £300,000.

Corporate Peer Challenge

The Council has recently been subject to a Corporate Peer Challenge from the Local Government Association.

Homes for Lambeth

One of the recommendations made by the LGA was that the Council should > Work quickly to provide clarity on the full revenue implications of HRA and the winding down of Homes for Lambeth.

Homes for Lambeth is a company that was wholly owned by the Council and was responsible for building new homes. The Council brought HfL back in-house in 2023 and is in the process of winding it down.

The Council acknowledged the need to urgently clarify the revenue implications of winding down the company.

Target Operating Model

The Council is proposing to implement a new Target Operating Model. The model is currently being developed and will be subject to consultation with staff, trade unions, members and residents. The aim of the model is to create savings by ensuring that the council is structured effectively to meet its challenges.

Organisational Culture

The LGA noted that there had been a significant improvement in the Council’s organisational culture. The Council has developed ‘One Lambeth values’ to further improve the organisational culture. The One Lambeth values are:

  • Accountability
  • Ambition
  • Equity
  • Kindness

These values are well embedded, but the Council acknowledges that more needs to be done to ensure consistency of approach across all departments.

Libraries

The most significant point of contention at the meeting was the Council’s plan to make efficiency savings of £1 million in the library service. The Council stated that the savings would be achieved by:

  • Formalising existing vacancies
  • Implementing a new commercial strategy

The Council stated that the service would be unaffected, but a representative from the Friends of Lambeth Libraries questioned what this would mean in practice for library users and challenged the council to be more transparent.

Age-Friendly Lambeth

The Council also discussed the Age-Friendly Lambeth Action Plan 2024-2027. The plan has been produced in line with the World Health Organization’s (WHO) Age-Friendly Cities and Communities Framework. The plan contains actions under the following themes:

  • Housing
  • Transport
  • Outdoor Spaces and Buildings
  • Community Support and Health Services
  • Communication, Participation, Respect and Inclusion
  • Civic Participation and Employment

The aim of the plan is to ensure that Lambeth is a place where all residents are able to age well. The plan was developed through consultation with residents and Voluntary Community Sector (VCS) organisations, including Age UK Lambeth, and a dedicated Age-Friendly Forum.

The Plan was welcomed by all members and attendees who contributed to its development.