The Mayor and Cabinet of Lewisham Council met on Wednesday 11 February 2026 to discuss and approve the Council Budget for 2026/27. Key decisions included the approval of a 4.99% increase in Council Tax and a review of various fees and charges across council services. The meeting also addressed matters raised by scrutiny concerning flood risk from paved-over gardens.

Matters Raised by Scrutiny and Other Constitutional Bodies

The Sustainable Development Select Committee urged Mayor and Cabinet to investigate how planning rules could be amended, improved, and strengthened to reduce flood risk arising from paved-over gardens. Councillor Liam Curran, Chair of the committee, highlighted that paved-over gardens not only increase flooding but also contribute to climate change problems such as urban overheating, reduced carbon dioxide absorption, and worse air and water pollution. The committee also proposed investigating council actions to promote regreening and reclamation guidance for plants and wildlife. Mayor Brenda Dacres noted the report and asked relevant officers to prepare a response.

Council Budget 2026/27

Mayor Brenda Dacres opened the discussion on the Council Budget for 2026/27, emphasizing the council's commitment to strong communities, fairness, and resilience, and its long record of careful financial management. She outlined the council's priorities, which are shaped by its manifesto and focus on a cleaner and greener borough, a strong local economy, decent and secure housing, opportunities for children and young people, safer communities, openness and inclusion, and better health and well-being. The budget aims to deliver around £35 million of savings over the next three years, a figure revised down from previous estimates of £50 million due to increased government support.

Councillor Amanda De Ryk, Cabinet Member for Finance, Resources and Procurement, provided further detail on the budget. She noted a late change to the settlement announced on Monday, which increased the council's core spending power to £426 million. The budget assumes a 4.99% increase in Council Tax, which, when combined with the GLA precept, will result in overall bills rising by just under 5%. The council plans to bring the collection rate down to 95% due to ongoing cost of living pressures faced by residents. The budget proposes using £2.4 million of reserves to set the next budget, with a target of delivering £30 million of savings this year and £35 million over the next three years. Rents are forecast to increase by 4.8% (CPI plus 1%), and there is positive news regarding the SEND deficit, with government support expected to cover 90% of the current deficit.

Councillor Will Cooper, Cabinet Member for Better Homes, Neighbourhoods and Homelessness, highlighted the budget's reflection of the council's commitment to safe and secure homes, detailing investments in temporary accommodation hostels and the broader capital programme for social housing. He noted the legacy of underfunding in housing revenue accounts and the impact of government policies on local authorities.

Councillor Edison Huynh, Cabinet Member for Children and Young People, spoke about the council's commitment to investing in young people and centering their voices. He acknowledged strains on the budget, particularly in social care, and outlined actions being taken to address rising costs and delays in residential projects.

Councillor James-J Walsh, Cabinet Member for Inclusive Regeneration and Planning, focused on the capital programme within his responsibilities, including new housing delivery, strategic regeneration, and infrastructure. He detailed investments in the Housing Revenue Account capital programme for new council homes and the general fund capital programme for strategic regeneration initiatives.

Councillor Paul Bell, Cabinet Member for Health, Wellbeing and Adult Social Care, paid tribute to the leadership in adult social care, noting their efforts in delivering savings while protecting vulnerable individuals. He also commended the council's financial management and its commitment to Labour values.

Mayor Dacres concluded the budget discussion by thanking all cabinet members and officers for their work, emphasizing that the budget is not just about money but about people's lives and the impact the council has on a day-to-day basis. She reiterated the council's commitment to Labour values and its role in supporting diverse communities, culture, sports, and arts. The recommendations in the report were agreed.

Other Decisions

The Mayor and Cabinet also approved updated housing policies, including those for complaints, remedies/compensation, and CCTV and surveillance. They also reviewed and approved the Empty Homes Strategy for Privately Owned Properties 2026-2029, aimed at tackling long-term empty homes.

In relation to regeneration, a 10-year lease was approved for Goldsmiths University to reprovision its design and fine art curriculum in the Old Town Hall, Catford. Investment was also approved for necessary works to the Catford campus. Decisions were made regarding the Building for Lewisham development programme, including budget changes for specific schemes and the acceptance of Affordable Housing Programme (AHP) and Local Authority Housing Fund (LAHF4) grant funding. The Besson Street Business Plan was approved, along with an extension to its pre-development loan. In-principle use of land assembly powers was agreed for the Lewisham Shopping Centre regeneration. Decisions were also made regarding the subject-to-planning disposal of land to the south of Copperas Street, Deptford Creekside, including commercial terms with Legal & General.

Admissions arrangements for 2027/28 were determined, including a reduction in Planned Number of Places (PANs) for 2026/27 and 2027/28. Permission was granted to consult on a new Special Educational Needs (SEN) provision for learners with Severe Learning Difficulties (SLD) at Deptford Park Primary School. The procurement of case management systems for the Children & Young People's Directorate and Adult Social Care & Health Directorate was agreed. Allocations for the Main Grants Programme 2026-2029 were approved, totalling £1,575,746 per annum. Forest Hill District Centre was designated as a High Street Rental Auction area. The Connected Futures Phase 2 grant award for Elevate 100 in Downham was accepted.

The meeting concluded with thanks to Councillor Amanda De Ryk for her work on the budget.