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Lewisham Council Faces £30m Budget Gap, Local Plan Approved

This week in Lewisham:

Council Faces Tough Choices to Balance Budget Amidst Rising Demand

Lewisham Council is grappling with significant financial pressures, with potential cuts to essential services on the horizon as it seeks to address a £30 million budget shortfall. The Overview and Scrutiny Committee met on Thursday to review the process for scrutinising budget savings proposals for 2025/26 and 2026/27, before a final decision by the Mayor and Cabinet.

  • Savings Target: The council needs to identify £30 million in savings, with each directorate given a target proportionate to their net budgets.
  • Savings Gap: Despite efforts, a £0.750 million savings gap remains, and officers are developing further proposals for consideration in the autumn.
  • Uncertainty Ahead: The council is awaiting the outcome of government funding reforms, which could lead to a revised Medium Term Financial Strategy (MTFS) and potentially a new budget gap for 2026/27 and beyond.
  • Assemblies at Risk: One proposal involves ending funding for the council-run assembly programme, potentially saving £203,000 annually. This decision would affect eight staff roles and require a change to the council constitution. An Equalities Impact Assessment (EIA) suggests that older people may be disproportionately affected.
  • Grants Programme Reduced: A further reduction of £217,000 is proposed for the Main Grants Programme, impacting community services and support. The council acknowledges that the voluntary and community sector (VCS) has already been significantly impacted by austerity and the cost of living crisis.
  • Adult Social Care Cuts: New savings proposals include reviewing care home placements, managing vacancies, increasing charges for the Linkline service, and reducing the Public Health Grant for prevention. These measures could have a significant impact on vulnerable adults and their access to care.

Local Plan Faces Final Hurdle as Council Prepares for Adoption

The Mayor and Cabinet met on Wednesday to discuss the adoption of the Local Plan, a key document that will shape development in the borough for years to come.

  • Inspector's Approval: The Planning Inspector has deemed the plan sound, subject to a number of main modifications.
  • Council Decision: The Mayor and Cabinet were scheduled to recommend that the council also agree to its adoption.
  • What's in the Plan: The Local Plan sets out policies and proposals for land use, housing, employment, transport, and the environment. It will guide decisions on planning applications and investment in the borough.

IT Committee Focuses on Cyber Security and Service Improvements

The Brent, Lewisham and Southwark IT Committee met on Tuesday to discuss the performance of the Shared Technology Service (STS) and receive an update on cyber security.

  • Cyber Security: The committee discussed the cyber security status, threats, and mitigations identified in relation to the STS.
  • Service Improvements: The STS has achieved the second lowest amount of open issues and requests for staff since its inception, despite having the largest user base on record.
  • Laptop Projects: Laptop projects are underway for Brent, and the Lewisham and Southwark business cases have been approved.

Other Matters

  • The Governance Committee discussed updates to the council's petition scheme, potentially allowing e-petitions submitted via Change.Org to be considered valid. The committee also discussed the use of substitutes on council committees to avoid meetings being inquorate.
  • The Mayor and Cabinet discussed the Main Grants Programme for 2026-29, the Building for Lewisham Programme, and sustainable street measures in various locations.

Upcoming Meetings

Lewisham: Defibrillator Locations, Workplace Safety, and More

This week in Lewisham:

Health and Safety Committee Discussed Workplace Safety and Defibrillator Locations

The Health and Safety Committee met on Tuesday to discuss a range of issues related to workplace safety and public health.

  • Employee and Public Safety: The committee reviewed the council's responsibilities under the Health and Safety at Work etc. Act 1974, ensuring the health, safety, and welfare of employees and the public.
  • Defibrillator Locations: Councillors discussed the locations of Automated External Defibrillators (AEDs) on council premises. As of the report, there were 18 defibrillators located in various council buildings, maintained by council staff, and registered with the London Ambulance Service. The report noted that this list excluded schools and community locations that maintain their own defibrillators, and that work would be undertaken to create a comprehensive listing.
  • Incident Reporting: The committee reviewed data on reported incidents, noting a slight year-to-year increase, driven by a significant rise in reported verbal abuse or threatening behaviour.
  • Premises Inspections: The council uses new health and safety software to complete quarterly premises inspections, allowing officers to distribute reports with photographic evidence promptly.

Other Matters

  • The Licensing Committee meeting scheduled for Wednesday was cancelled.

Upcoming Meetings

Lewisham Schools Face Funding Crisis, Council Eyes Savings

This week in Lewisham:

Schools Forum Faces High Needs Funding Crisis Amidst Budget Pressures

Lewisham's Schools Forum met on Thursday to grapple with the ongoing financial pressures on the borough's schools, particularly the escalating costs associated with supporting children with special educational needs and disabilities (SEND).

  • DSG Deficit: The Dedicated Schools Grant (DSG) is currently facing a £3 million overspend for 2024/25, primarily driven by the High Needs Block, which funds SEND services. The cumulative DSG deficit now stands at £18.5 million.
  • High Needs Block Strain: The report pack highlighted the continuing pressure on the High Needs Block, with a cumulative variance of £18.9 million. This means that the council is spending significantly more on SEND services than it receives in funding from the government.
  • School Balances Dwindling: Overall school balances have decreased from £13.0 million to £9.9 million, a net reduction of £3.1 million. 25 schools are currently in deficit, totaling £11 million.
  • Premature Retirement and Redundancy Costs: The Schools Forum also discussed how the costs associated with premature retirement and redundancy are met. Lewisham Council's Funding Framework – Scheme for Financing Schools states that early retirement costs should be charged to the school's delegated budget, unless the local authority agrees otherwise in exceptional circumstances.

Council Eyes Contract Extensions and Affordable Housing Acquisition Amidst Financial Scrutiny

The Mayor and Cabinet convened on Wednesday to address a range of issues, including financial performance, climate action, and key contract extensions.

  • Financial Overspend: The draft financial outturn position for 2024/25 revealed a £19 million overspend in the General Fund1, even after using £13.2 million from corporate provisions and reserves. The Dedicated Schools Grant2 also showed a £3 million deficit.
  • Contract Extensions: A significant item on the agenda was the proposed extension of the contract with Matrix SCM Ltd for managed services for temporary agency resources. The extension, valued at £64.7 million, would run for two years, from 29 July 2025 to 28 July 2027. The additional cost was attributed to increased employer's National Insurance contributions.
  • Affordable Housing Acquisition: The Mayor and Cabinet were scheduled to discuss the acquisition of 42 affordable housing units at the Apollo Business Centre from Fosfel Hurlington Limited as part of the Building for Lewisham Programme. The unit mix includes a high number of larger units, with 14 three-bedroom and 24 two-bedroom units, and the social rents are set at London Affordable Rent.

Public Accounts Committee Examines Budget Savings and Financial Strategy

The Public Accounts Select Committee met on Wednesday to scrutinize the council's financial performance, medium-term financial strategy, and proposed budget savings.

  • General Fund Overspend: The General Fund had a reported overspend of £32.2m against directorates' net GF Revenue Budget, reduced to £19m after the commitment of £13.2m from corporate provisions and reserves.
  • Savings Proposals: The committee reviewed draft proposals for budget reductions for 2025/26 – 2026/27, which were needed to address the £30m budget shortfall identified in setting the Council's 2025/26 budget.
  • Equalities Implications: The report included a summary of the equalities implications of the proposed savings.

Planning Committee Considers Residential Developments and Traveller Site Proposal

Planning Committee A was scheduled to discuss several planning applications, including a proposal for a traveller site at Pool Court, Fordmill Road.

  • Traveller Site Concerns: The proposal involves three static traveller pitches, associated modular buildings, utility buildings, and landscaping. The application received 12 responses, including 9 objections and 2 supporting comments. Objections raised concerns about the character of the area, anti-social behaviour, noise, degradation of the SINC3, and increased air pollution.
  • Residential Developments: The committee was also scheduled to consider an application for the demolition of an existing building and the construction of a four-storey building with eight flats at 29 Wynell Road, SE23. The application received 20 responses, including 19 objections. Concerns included overdevelopment, loss of daylight and sunlight, loss of privacy, harm to the character of the area, flood risk, and increased pollution.

Other Matters

  • The Health and Safety Committee is scheduled to meet on 1 July 2025. The meeting will include a review of the minutes from the previous meeting, updates from the Corporate Health & Safety Board, and for councillors to declare any conflicts of interest.

Upcoming Meetings

  1. The General Fund is the main revenue account of a local authority, funding the majority of its services. ↩

  2. The Dedicated Schools Grant (DSG) is funding allocated to local authorities specifically for education-related services. ↩

  3. A Site of Importance for Nature Conservation (SINC) is an area designated for its significant ecological value. ↩

Lewisham: Traveller Site Plan Debated, Pension Reforms Loom

This week in Lewisham:

Traveller Site Proposal Sparks Debate Amid Housing Needs

The Planning Committee A met on Tuesday to discuss a range of planning applications, including a proposal for traveller pitches at Pool Court, Fordmill Road. The plan involves creating a new traveller site with up to three pitches or dwellings.

  • Site Allocation: The land is earmarked in the emerging local plan for gypsy and traveller accommodation.
  • Community Concerns: While the planning officer raised no objections in principle, citing alignment with the emerging plan, the proposal has drawn mixed reactions. Nine individual objections and a petition were submitted by residents, while two responses supported the plan. The Culverley Green Residents Association also objected to the development.
  • Conservation Considerations: The Council's Conservation Officer noted the site's proximity to the Culverley Green conservation area, emphasizing the importance of open spaces and landscaping.
  • Ecological Support: The Council's Ecology officer supports the use of native planting, living roofs, and other measures to protect and enhance the local environment.

Council Grapples with Pension Fund Investments Amidst Government Reforms

The Pension Board convened on Monday to discuss the government's response to the consultation on Local Government Pension Scheme (LGPS) reforms, outlined in the 'Pensions Investment Review Final Report 2025'. These reforms could significantly impact how Lewisham manages its pension fund.

  • Pooling Mandate: The government is pushing for all Administering Authorities (AAs) to delegate investment implementation to their asset pool by March 31, 2026. This includes transferring all assets to the pool's management and taking principal investment advice from the pool.
  • Local Investment Focus: The reforms also emphasize collaboration with local authorities and regional mayors to set target ranges for local investment and report annually on its impact.
  • Transition Plans: The Treasury and Investment Manager are scheduled to update the Board on transition plans with the London LGPS CIV Limited (London CIV)1 to ensure the entire fund is under London CIV management by the deadline.
  • Pension Fund Business Plan: The Pension Board was also expected to review and note the Lewisham Pension Fund Draft Business Plan 2025/26, outlining goals and objectives for managing the pension fund over the coming year.

Corporate Parenting Group Focuses on Strategy Refresh and Support for Care Leavers

The Corporate Parenting Group met on Tuesday to discuss a refresh of the Corporate Parenting Strategy for 2025-27, outlining how Lewisham Council cares for children in care and care leavers2.

  • Strategy Priorities: The refreshed strategy focuses on ensuring stable homes for children in care, improving their educational outcomes, and supporting care leavers to live independently.
  • Education, Training, and Employment: The group also discussed a report on Education, Training and Employment (ETE) for care leavers, highlighting barriers they face in accessing ETE and the support provided by Lewisham Works.
  • Health Updates: The Corporate Parenting Group was scheduled to receive updates on health-related matters, including a Health Leads Report Update and a verbal update on the CAMHS3 / Orbit Report.

Other Matters

  • The Housing Select Committee was scheduled to review the council's performance as a social housing landlord for the 2024/25 financial year, including Tenant Satisfaction Measures (TSMs) and compliance with Consumer Standards for Social Housing.
  • The Sydenham Assembly meeting on Saturday included discussions on the Sustainable Streets programme, air quality in Sydenham, updates from the Safer Neighbourhood Police Team, and community updates from local groups.
  • The Standing Advisory Council of Religious Education (SACRE) met to discuss the Agreed Syllabus Conference, feedback from the NASACRE4 Conference and AGM, and the Young Mayor's project.

Upcoming Meetings

  1. The London CIV is a collaboration between London local authorities to pool their investments and reduce costs. ↩

  2. A 'care leaver' is a young person who has been in the care of the local authority for at least 13 weeks spanning their 16th birthday, and who is no longer in care. ↩

  3. CAMHS stands for Child and Adolescent Mental Health Services. ↩

  4. NASACRE is the National Association of Standing Advisory Councils for Religious Education. ↩

Lewisham: Youth Services Face Cuts, Social Care Faults Found

This week in Lewisham:

Cuts to Youth Services and School Repairs on the Table as Council Seeks Savings

Lewisham Council is facing tough choices as it aims to bridge a £30 million budget shortfall, with potential cuts to youth services and school repairs under consideration. The Children and Young People Select Committee met on Tuesday to discuss draft proposals for budget reductions in 2025/26 and 2026/27.

  • Youth Service Budget Under Pressure: A proposed reduction of £100,000 in 2025/26 and £200,000 in 2026/27 to the Youth Service Budget could be implemented by redesigning the new Youth Offer and bringing the delivery of youth service in-house.
  • School Repairs Could Be Scaled Back: The committee also discussed a potential £50,000 reduction in both 2025/26 and 2026/27 in repairs and maintenance spending from the School Estates budget, achieved through reducing ongoing spend outside of the Department for Education (DfE) Capital Grant.
  • Assembly Programme Faces the Axe: As previously reported, the council is also considering ending funding for the council-run Assembly Programme, leading to annual savings of £203,000 from 2026/27. The Equalities Impact Assessment for this proposal acknowledges that the lack of a structured consultation process at the ward level may create a gap in terms of agreeing needs and use of funds at ward level between the Council and residents.
  • The Bigger Picture: These cuts are part of a wider effort to identify £30m of savings to avoid relying on reserves to set a balanced budget. A draft report presented to the committee indicated that there was still a savings gap of £0.750m for which measures needed to be identified.

Ombudsman Finds Fault Causing Injustice in Council's Handling of Children's Social Care Complaints

The Children and Young People Select Committee also reviewed the findings of a Local Government and Social Care Ombudsman (LGSCO)1 investigation into the council's handling of statutory children's social care complaints.

  • Delays and Denied Access: The investigation found fault causing injustice due to delays and denial of access to the full complaints procedure.
  • Recommendations for Improvement: The LGSCO made four recommendations, including inviting complainants who were affected by the delays to proceed to stage two of the procedure and ensuring staff understand the requirements for progressing a complaint to stage two.
  • Action Plan in Place: The council has developed an improvement action plan to address the issues raised by the LGSCO.

Sustainable Streets Programme Aims to Reduce Car Use and Improve Air Quality

The Sustainable Development Select Committee met on Wednesday to receive an update on the Sustainable Streets Programme2, an initiative designed to improve road safety, reduce car dependency and enhance the environmental quality of local streets.

  • Policy Context: The programme aligns with Lewisham's Corporate Strategy (2022-2026), Future Lewisham (2021), the Climate Emergency Action Plan (2019), and the Air Quality Action Plan (2022-2027), as well as regional and national policies.
  • Programme Goals: The programme aims to reduce unnecessary car journeys, improve road safety and air quality, increase accessibility, and respond to resident feedback.
  • Mixed Engagement: Engagement levels with residents have been mixed, with some areas showing high engagement and others showing very little.

Pension Fund Investments Performing Well on Climate Risk, But Challenges Remain in Achieving Net Zero

The Pensions Investment Committee convened on Thursday to discuss a range of issues, including climate risk and the fund's progress towards net zero emissions.

  • Significant Emissions Reduction: The fund's investments have reportedly cut their absolute emissions by about 93% since 2019.
  • Net Zero Challenges: Achieving Net Zero by 2030 or 2040 will require a focus on investments that actively remove carbon from the atmosphere.
  • Member Survey Planned: The fund intends to undertake a member survey to gather information useful in terms of both administration and investment management and policy development. This follows counsel advice that the views of its members must be reflected within its ESG policies, and not those of its trustees (the Committee).

Other matters

  • The Sustainable Development Select Committee also discussed draft budget reduction proposals for 2025/26 and 2026/27, designed to address a £30 million budget shortfall.
  • The Pensions Investment Committee also discussed the draft annual business plan.

Upcoming Meetings

  • Corporate Parenting Group - Tuesday 17 June 2025 - Corporate Parenting Strategy refresh, Virtual School annual report, and employment and training for care leavers.
  • Standing Advisory Council of Religious Education (SACRE) - Tuesday 17 June 2025 - Holocaust Memorial Day update, Agreed Syllabus Conference, and feedback on the NASACRE Conference and the Lewisham as Places of Belonging conference.
  • Housing Select Committee - Wednesday 18 June 2025 - Budget savings, housing performance, the Housing Allocation Policy, and select committee work programme.
  • Pension Board - Monday 16 June 2025 - LGPS pooling and government reforms, draft business plan, and general update.
  • Planning Committee A - Tuesday 24 June 2025
  • Mayor and Cabinet - Wednesday 25 June 2025
  • Public Accounts Select Committee - Wednesday 25 June 2025
  • - Thursday 26 June 2025

  1. The Local Government and Social Care Ombudsman investigates complaints about councils, adult social care providers and some other organisations. It is free, independent and impartial. ↩

  2. The Sustainable Streets programme aims to improve road safety, reduce car dependency and enhance the environmental quality of local streets. ↩

Recent meetings
Council

Council - Wednesday, 16th July, 2025 7.30 pm

The Council of Lewisham was scheduled to meet on 16 July 2025. The agenda included discussion of the adoption of the Lewisham Local Plan, the Lewisham CIL Charging Schedule, and a motion regarding divestment for Palestine. Councillors were also expected to discuss appointments to committees and outside bodies.

July 16, 2025
Planning Committee B

Planning Committee B - Tuesday, 15th July, 2025 7.00 pm

Planning Committee B convened to discuss several planning applications, including proposals for new housing, alterations to existing buildings, and the continued use of a meeting hall.

July 15, 2025
Health and Wellbeing Board

Health and Wellbeing Board - Monday, 14th July, 2025 3.00 pm

The Health and Wellbeing Board was scheduled to meet on 14 July 2025 to discuss several strategic health priorities for Lewisham. These included the election of a vice-chair, a review of the minutes from the last meeting, and updates on drug, alcohol, and tobacco strategic priorities. The board was also expected to discuss and approve the Health and Wellbeing Strategy for 2025-2030 and receive updates on the Joint Strategic Needs Assessment, the Pharmaceutical Needs Assessment, and the Better Care Fund.

July 14, 2025
Overview and Scrutiny Committee

Overview and Scrutiny Committee - Thursday, 10th July, 2025 7.00 pm

The Overview and Scrutiny Committee was scheduled to meet to review the budget scrutiny process and approve the work programmes for the select committees. The meeting was also scheduled to cover declarations of interest from councillors.

July 10, 2025
Mayor and Cabinet

Mayor and Cabinet - Wednesday, 9th July, 2025 6.00 pm

The Mayor and Cabinet of Lewisham Council were scheduled to meet on 9 July 2025 to discuss a range of issues, including the adoption of the local plan, budget savings, and the main grants programme. Other topics for discussion included housing services, corporate banking, social care, transport, and youth services. Some items were marked as Part 1 and Part 2, with Part 2 being held in a closed session, but it was determined that decisions taken in Part 1 were sufficient and Part 2 was not needed.

July 09, 2025
Brent, Lewisham and Southwark IT Committee

Brent, Lewisham and Southwark IT Committee - Tuesday, 8th July, 2025 6.00 pm

The Brent, Lewisham and Southwark IT Committee was scheduled to meet on 8 July 2025, to discuss the performance of the Shared Technology Service (STS), and to receive an update on cyber security. The committee was also expected to confirm the appointment of a chair for the meeting and to approve the minutes of the previous meeting.

July 08, 2025
Governance Committee

Governance Committee - Tuesday, 8th July, 2025 7.00 pm

The Governance Committee of Lewisham Council was scheduled to meet on 8 July 2025 to discuss updates to the council's petition scheme and the use of substitutes on council committees. The agenda for the meeting also included the minutes from a previous meeting, declarations of interest, and a verbal update on the future work programme.

July 08, 2025
Licensing Committee CANCELLED

Licensing Committee - Wednesday, 2nd July, 2025 7.00 pm

This meeting has been cancelled.

July 02, 2025
Health and Safety Committee

Health and Safety Committee - Tuesday, 1st July, 2025 6.00 pm

The Health and Safety Committee was scheduled to meet to discuss the minutes from a previous meeting and to receive an update on the Corporate Health & Safety Board.

July 01, 2025
Committee

Decision Sheet, Schools Forum - Thursday, 26th June, 2025 4.30 pm

The Schools Forum met on Thursday to discuss a range of financial and strategic issues affecting schools in Lewisham. These included the Dedicated Schools Grant outturn position, premature retirement costs, and the Schools Forum work plan. The forum also received a verbal update on the High Needs Block.

June 26, 2025
Upcoming meetings
Audit and Risk Committee

Audit and Risk Committee - Tuesday, 22nd July, 2025 7.00 pm

July 22, 2025
Licensing Committee

Licensing Committee - Wednesday, 23rd July, 2025 7.00 pm

July 23, 2025
Strategic Planning Committee CANCELLED

Strategic Planning Committee - Thursday, 31st July, 2025 7.00 pm

July 31, 2025