The Lambeth Council Cabinet met to discuss the Quarter 1 Financial Performance Report 2025-26 and the Outcomes Framework Performance: Q1 2025/26. The Cabinet approved recommendations for both reports, and also approved the minutes of the previous meeting.

Quarter 1 Financial Performance Report 2025-26

The Cabinet received the Quarter 1 Financial Performance Report 2025-26, which provided an update on the council's financial position. Councillor Claire Holland, Leader of the Council, highlighted the severe financial pressures the council is facing, particularly in statutory services such as temporary accommodation¹, adult social care, and children's social care.

The report projected a £20.38 million overspend for the year, with the largest pressures in Housing Services (£19.99 million), Adult Social Care (£8 million), and Children's, Families & Education (£6 million).

Councillor Claire Holland, Leader of the Council, stated that the council has taken management actions and spending controls to reduce overspending, with over 80% of planned savings for 2025-26 on track. She also mentioned a borough-wide transformation programme underway, including reducing director posts, a recruitment freeze, ending non-essential spending, and reviewing capital investments.

Councillor Rezina Chowdhury, Deputy Leader of the Council (Sustainable Lambeth and Clean Air), asked for assurance on the delivery of savings. Officers confirmed that only savings with verifiable evidence were marked as on track, and all savings (including those marked green) were actively monitored.

The Cabinet approved the following recommendations:

1. To note the forecast position for 2025-26 of the Council's General Fund as at the end of June 2025.
2. To note the forecast position for 2025-26 of the Council's Housing Revenue Account financial position as at the end of June 2025.
3. To note the management actions already being taken by Corporate Directors to reduce the forecast position to within budget by the end of the financial year.
4. To consider and comment on the progress on the delivery of in-year savings.
5. To consider and comment on the identification of additional in year savings and management actions to be considered and agreed by Cabinet at its next meeting to bring the forecast overspend to within budget by the end of the financial year.
6. To note the review of the Capital Investment Programme to minimise future borrowing and associated revenue costs.
7. To note the 2025/26 year-end forecast as at the end of Quarter 2 will be reported to November Cabinet.
8. To note the Draft Flexible Use of Capital Receipts Policy.
9. To note the actions relating to reserves to help safeguard the Council's financial position.

Outcomes Framework Performance: Q1 2025/26

The Cabinet received the Outcomes Framework Performance: Q1 2025/26 report. Councillor Fred Cowell, Cabinet Member for Digital, Data and Resident Experience, introduced the report, highlighting the council's progress towards becoming a borough of equity and justice by 2030, with 72% of targets met in Quarter 1.

Notable achievements included a bounce back in early years education uptake, a reduction in temporary accommodation, and strong performance in adult social care.

Councillor David Bridson, Cabinet Member for Healthier Communities, highlighted positive inspection feedback for adult social care and the team's hard work. Councillor Rezina Chowdhury, Deputy Leader of the Council (Sustainable Lambeth and Clean Air), celebrated achievements in sustainability, including exceeding targets for curbside recycling, tree planting, and EV charging infrastructure.

Councillor Fred Cowell, Cabinet Member for Digital, Data and Resident Experience, drew attention to the importance of distinguishing between key performance indicators and borough context indicators².

The Cabinet approved the recommendation to consider and comment on the latest performance update against the delivery of the Outcomes Framework.