The Cabinet meeting on 02 February 2026 focused on crucial strategies for the borough's future, including a comprehensive Air Quality Action Plan for 2026-2028, an updated Placement Sufficiency Strategy for children in care and care leavers, and the setting of HRA rents and service charges for the upcoming financial year. The council also reviewed its Medium-Term Financial Strategy, outlining significant savings proposals to address budget challenges.

Lambeth Air Quality Action Plan 2026-2028

Councillor Rezina Chowdhury, Deputy Leader of the Council (Sustainable Lambeth and Clean Air), introduced the Lambeth Air Quality Action Plan 2026-2028. The plan aims to improve air quality across the borough, which is considered fundamental to a healthy, fair, and thriving Lambeth, aligning with the Borough Plan's commitment to a healthier, safer, and more equitable borough by 2030. Air pollution disproportionately affects vulnerable groups, including children, older people, those with heart and lung conditions, multi-ethnic communities, and residents in deprived neighbourhoods. The plan builds on previous successes and outlines seven priority areas, such as cleaner transport and freight, reducing emissions from buildings and construction, and strengthening monitoring, enforcement, and public awareness. Lambeth is reportedly on track to meet its Air Quality Vision targets by 2030, including alignment with World Health Organisation guidelines.

Several stakeholders addressed the Cabinet:

• Zak Bond from Clean Cities highlighted Lambeth's leadership in expanding electric vehicle (EV) charging infrastructure, with ambitions for a car club on every street and estate by 2030. He noted the significant contribution of diesel vans to oxides of Nitrogen (Nox) and PM2.5 emissions and suggested the potential for electric-only loading bays, increased support for cargo bike adoption, and exploration of zero-emission freight zones in partnership with neighbouring boroughs.
• Claire McDonald from Solve the School Run presented evidence from Transport for London (TfL) indicating that School Streets reduce nitrogen dioxide by 23% and achieve an 18% modal shift. She emphasised the long-term behavioural impact of sustained School Street schemes and noted that 12 eligible primary schools were still awaiting implementation, affecting approximately 5,000 children. She also stressed the importance of extending School Streets to secondary schools.
• Ben Pearce from Impact on Urban Health highlighted the importance of measurable targets aligned with World Health Organisation guidelines and the need to centre equity more explicitly within the Action Plan. He also emphasised the importance of ensuring that feedback from the Air Quality Forum influenced policy decisions and continued collaboration on construction emissions and evaluation of the Construction Compliance Officer role.

Officers advised that an Equality Impact Assessment (EIA) had been conducted on the Action Plan, concluding that it would deliver net positive impacts for children, older people, residents with existing health conditions, and Black and minority communities, with no significant adverse impacts identified. Trials to incentivise electric cargo bikes for businesses were underway, with lessons learned to inform wider rollout. Equity was central to the plan, with the Air Quality Forum designed to ensure those most affected by poor air quality shaped priorities. Lambeth was also leading on construction emissions work, with the Construction Compliance Officer role intended to continue. Officers were working with the procurement team to introduce realistic and deliverable Key Performance Indicators (KPIs) for contracts to reduce emissions, particularly from the Council's fleet. Collaboration with Public Health aimed to align air quality and respiratory health priorities, including promoting the Asthma Friendly Schools programme.

The Cabinet resolved to adopt the Lambeth Air Quality Action Plan 2026-2028.

Placement Sufficiency Strategy for Children in Care & Care Experienced Young People 2025–30

Councillor Ben Kind, Cabinet Member for Children, Young People and Families, presented the Placement Sufficiency Strategy for Children in Care & Care Experienced Young People 2025–30. The strategy outlines Lambeth's approach to ensuring sufficient, high-quality placements for children in care and care leavers. Key points highlighted included:

• Lambeth had recruited 24 new foster carers in the previous year, the highest number in London, reflecting significant improvement and the strength of the Council's holistic One Lambeth support offer for carers and young people.
• The strategy aligns with Child Friendly Lambeth principles and strengthens the Council's corporate parenting responsibilities.

Councillor Matthew Bryant, Liberal Democrats Deputy Group Leader, raised concerns about the Edge of Care approach, noting that while numbers had stabilised at just under 400, he sought clarification on anticipated reductions and whether targets had been set. He also inquired about planned foster carer recruitment initiatives and lessons learned from the previous year's success.

Officers responded that recruitment processes had been redesigned for improved responsiveness and candidate experience, including faster enquiry responses, streamlined assessments, prioritised medical checks, and proactive community-based recruitment. A multi-faceted strategy was in place to attract and retain foster carers. Edge of Care work was being strengthened through the Families First Partnership to improve integrated early help, with further analysis underway to quantify impact and early permanence outcomes. Improved analysis of projected need and the profile of children entering care enabled more targeted foster carer recruitment, including engagement with faith communities and specific neighbourhoods. It was also noted that prospective and approved foster carers were placed in the highest priority banding for accommodation under the Council's Housing Allocation Policy.

Councillor Ben Kind reassured Cabinet that reductions in children in care reflected outcome-focused decisions rather than financial targets, with interventions tailored to individual needs and stability prioritised through various permanence options. Cabinet members expressed thanks to partners, stakeholders, and in-house foster carers, and confirmed their continued openness to ideas, feedback, and collaboration.

The Cabinet resolved to approve and endorse the Placement Sufficiency for Children in Care and Care Experienced Young People 2025-30 Strategy.

HRA Rent and Service Charge Setting Report

Councillor Danial Adilypour, Deputy Leader of the Council (Housing, Investment and New Homes), introduced the report on Housing Revenue Account (HRA) Rent and Service Charge setting for 2026/27. The report detailed proposed rent and service charge levels in line with national policy, balancing investment in housing stock with affordability.

Key points included:

• A proposed rent increase of 4.8% (CPI+1%), the maximum allowed by the Regulator of Social Housing for continuing tenancies, effective from 6 April 2026.
• Approval for convergence to formula rent at the maximum rate determined by HM Government.
• Proposed changes to tenant and leasehold service charges, detailed in Appendix 1, with an average increase of £3.44 (4.9%) per week for properties with all services.
• Increases in sheltered housing management service charges, with a proposed £10 per week increase for tenants in sheltered housing to reach full cost recovery.
• An increase in garage rental charges, with no change for sheds and cycle storage.

Georgina Schueller addressed Cabinet, raising concerns about the proposed rent and service charge increases, warning of their impact on tenants, particularly those just above the benefits threshold. She advocated for greater investment in repairs and tackling the root causes of disrepair, rather than litigation, and expressed concern about rising arrears and homelessness, urging the Council to improve housing management and lobby the government on historic HRA funding and debt issues.

Councillor Matthew Bryant queried why the Rent Setting Question and Answer (Q&A) session with tenants had not taken place prior to Cabinet, stating that while not statutorily required, it would have been preferable for Cabinet to hear tenants' views before setting rents.

Officers responded that the Q&A session was delayed due to uncertainty around rent convergence guidance, ensuring residents received clear information. They also noted that due to changes in Universal Credit data sharing, the Council no longer held detailed benefit information. Officers clarified that HRA borrowing funded the capital programme and was reinvested into housing stock improvements. They explained that each £1 per week rent convergence increase equated to approximately £1.2m of annual HRA income, and delays to convergence had contributed to a shortfall limiting investment capacity.

The Cabinet resolved to approve the proposed rent increases, convergence to formula rent, tenant and leasehold service charges, sheltered housing management service charges, and garage rental charges, all effective from 6 April 2026.

January Financial Planning and Medium-Term Financial Strategy Report 2025-2030

Councillor Judith Cavanagh, Acting Cabinet Member for Finance, introduced the report on the Council's Medium-Term Financial Strategy (MTFS) for 2025–2030. The report highlighted significant financial pressures, including rising temporary accommodation costs, increasing social care demand, and borrowing pressures, forecasting a funding gap of £49.9m for 2026-27 and £84.378m over the four-year period.

Key points from the report included:

• The council conducted its largest-ever budget engagement exercise, with over 5,000 responses, indicating residents prioritised protecting services for vulnerable people, waste and street cleaning, and tackling violence and anti-social behaviour.
• The provisional Local Government Finance Settlement for 2026-27 to 2028-29 offers some stability but does not fully address the structural underfunding and pressures faced by London councils, particularly in temporary accommodation and social care.
• Lambeth's share of national funding has fallen under the new Fair Funding Review 2.0 formula, with transitional arrangements phasing in changes over three years.
• A significant concern is the £35m cap on the Recovery Grant Guarantee, which limits Lambeth's funding increase compared to what it could otherwise receive.
• The report detailed proposed savings totalling £18.643m over the MTFS period, with £7.769m for 2026-27, across various directorates including Integrated Health and Adult Social Care, Children, Families & Education, Growth & Environment, and Resources.
• The council's reserves have been significantly depleted, with a target to rebuild general reserves to 10% of net revenue expenditure (£45m). An application for Exceptional Financial Support (EFS) has been made to address historical and current year issues and to rebuild reserves.
• The report noted the ongoing pressures in Temporary Accommodation, with expenditure forecast to reduce in 2026-27 due to prevention and move-on initiatives.
• Savings proposals in Children, Families and Education focus on increasing in-house foster care, preventing care starts, and improving routes out of care.
• Adult Social Care faces sustained demand and rising costs, with actions including commissioning exercises to transition away from spot placements.
• The Public Health Grant transitions to a multi-year settlement, offering improved stability.
• The HRA faces significant deficits due to rent policies and unfunded regulatory burdens, with a £40m Exceptional Financial Support (EFS) capitalisation directive to address housing disrepair.
• A 5-year recovery plan for the HRA is proposed to rebuild reserves.
• The capital programme is being reviewed to minimise borrowing and align with Lambeth 2030.

The Equity and Justice (E&J) Panel had considered the savings proposals, and a verbal update was to be provided to Cabinet. The Final Local Government Finance Settlement was expected the following week, which would necessitate updates to the MTFS assumptions.

The Cabinet resolved to agree and approve the proposed savings, note the consideration of savings by the Equity and Justice (E&J) Panel, and note the expected publication of the Final Local Government Finance Settlement.