The Cabinet of Lambeth Council met on Wednesday 22 July 2026 to discuss the council's financial position. The meeting addressed a projected overspend of nearly £11 million for the current financial year and outlined a cumulative funding gap of over £93 million for the period 2027-2030.

Early Year End Forecast 2026-27 and Contract Award for Specialist Support for the Finance Improvement Programme

The council is projecting an overspend of £10.979 million for the 2026-27 financial year, as detailed in the Early Year End Forecast report¹. This early reporting aims to provide maximum time to address the financial pressures, which are primarily driven by increased costs in temporary accommodation and children's services, as well as income shortfalls in growth and environment services. Councillor Zvikomborero Chihoro, Cabinet Member for Finance and Community Wealth Building, introduced the report, highlighting that savings promised by the previous administration had not materialised.

During the discussion, Councillor Verity McGibbon raised concerns about savings delivery, particularly in adult social care and children's services, and questioned the council's expertise in interrogating income projections. Councillor Diogo Costa expressed disappointment over proposed cuts to library opening hours, questioning how this aligned with the Green Party's manifesto pledges. Councillor Matthew Bryant welcomed the proposal to invest in electric vehicle charging points but questioned the significant outlay on consultancy for the Finance Improvement Programme and waste management tendering. Councillor Chris Nicholson criticised the previous administration's budget as a work of fiction and highlighted the new administration's proposed cuts to services.

Cabinet members responded to these concerns. Councillor Natalie Kane defended the approach to libraries, stating that the previous administration had imposed significant cuts. Councillor Chihoro explained the need for expert help in identifying savings and justified the allocation of funds for waste management and the finance improvement programme, emphasising collaboration with other parties. Councillor Jeremy Isaacs defended the decision to pause the closure of the Central Hill Dementia Day Centre, arguing that the proposed savings were irresponsible and would leave the borough with insufficient dementia daycare places. Councillor Alice Weavers noted high costs in children's social care, and Councillor Michael Chessum reflected on the contradictions in the opposition's arguments regarding planned cuts. Councillor Pete Elliott highlighted the dire state of housing services and the significant costs incurred by Homes for Lambeth .

The Cabinet considered the recommendations in the report, including the use of flexible capital receipts for the finance improvement programme and the capital scheme for electric vehicle charging points.

Medium Term Financial Strategy Update Report 2027-2031

The Cabinet also considered the Medium Term Financial Strategy (MTFS) Update Report 2027-2031², which outlines a projected budget gap of £19.096 million for 2027-28, with a cumulative shortfall of £93.217 million across the period to 2029-30. Councillor Chihoro presented the report, explaining that while the first multi-year government settlement offered some certainty, significant pressures from rising demand and costs, particularly in adult and children's social care and temporary accommodation, remained. The Fair Funding Review 2.0 is also expected to lead to a substantial reduction in Lambeth's core funding over the MTFS period.

Visiting councillors raised several points. Councillor Clare Holland expressed concern about the slippage in Lambeth's finances and a perceived lack of transparency, questioning decisions regarding debt and the proposed financial review. Councillor Bryn Scott highlighted a lack of a timeline for savings proposals and questioned the funding of new capital projects, as well as the impact of pausing the Central Hill Dementia Centre closure. Councillor Chris Nicholson focused on the significant budget gaps projected for future years and the need for a clear plan to address them.

Cabinet members responded to these concerns, with Councillor Martin Abrams, Leader of the Council, highlighting Homes for Lambeth as a significant financial drain and questioning why the council was footing the bill for the £175 million redress scheme for historic child sex abuse survivors. Councillor Chihoro addressed concerns about council tax increases, stating that the previous administration had raised it annually, and emphasised the need for collaboration. Councillor Scott Ainslie spoke passionately about the value of services like the Central Hill Dementia Day Centre and the need to measure value beyond pounds and pence .

The Cabinet considered the recommendations in the report, noting the budget gap and the council's commitment to delivering existing savings.