The Cabinet of Lambeth Council met on Monday 23 February 2026 to discuss a range of important issues, including the adoption of a new Borough of Sanctuary Strategy, the council's financial performance for the third quarter of the 2025/26 financial year, and the proposed revenue and capital budgets for 2026/27 alongside the Medium-Term Financial Strategy for 2026/27 to 2029/30. The meeting also included a review of the Housing Revenue Account budget and the Dedicated Schools Grant.

Borough of Sanctuary Strategy

The Cabinet was scheduled to consider the adoption of the Lambeth Borough of Sanctuary Strategy for the period 2025-2028. This strategy is intended to ensure that Lambeth remains a welcoming place where those seeking sanctuary can feel safe, access opportunities, and receive the support they need to thrive. The strategy aligns with the Lambeth 2030 Borough Plan's commitment to equity and justice, and its reaccreditation process requires an updated strategy every three years. The report highlighted that the strategy and associated services are fully funded through central government grants, designated for supporting individuals seeking sanctuary through safe and legal routes. Financial implications were noted as relating to the appropriate use of this grant funding, ensuring service provision remains within available grants and is subject to their continuation. The strategy itself is divided into six themes: Promoting Integration and Access to Accommodation; Communication and Raising Awareness; Providing Access to Education, Skills, and Employment; Enhancing Health and Wellbeing; Strengthening Safeguarding; and Supporting Young People.

Quarter 3 2025/26 Budget Monitoring Report

This report was scheduled to provide a comprehensive assessment of the council's financial position for the third quarter of the 2025/26 financial year. It was intended to offer transparency and oversight of the council's finances, noting that considerable work still needs to be done to achieve a sustainable balanced budget and Medium-Term Financial Strategy (MTFS). The report was expected to reflect significant and ongoing financial pressures due to real-terms cuts in government funding since 2010, increased service demand, and high inflation rates. Specific areas of pressure highlighted included rising temporary accommodation costs, increasing demand in adult and children's social care, and pressures in growth and environment services. The report was also to detail savings delivery performance for 2025/26 and planned remedial actions.

Revenue and Capital Budget 2026/27 and Medium-Term Financial Strategy 2026/27 to 2029/30

The Cabinet was set to discuss the council's revenue and capital budget for 2026/27, alongside the Medium-Term Financial Strategy (MTFS) for the period 2026/27 to 2029/30. This comprehensive report was to outline the council's financial strategy, detailing savings proposals, transformation activities, and strengthened financial governance arrangements. The approach aimed to stabilise the council's financial position while protecting priority services where possible. The report was expected to address significant financial pressures, including rising temporary accommodation costs and increasing social care demand. It was also to outline proposed savings and income-generating proposals totalling over £99 million agreed to balance the budget for 2026/27 and contribute to closing the budget gap for future years. The report was to include proposals for Council Tax increases, with a 2.99% increase in general Council Tax and a 2.00% increase in the Adult Social Care precept for 2026/27. The Housing Revenue Account (HRA) budget, Schools' Budget, and Treasury Management Strategy were also to be considered.

Housing Revenue Account (HRA) Budget 2026/27

The report was scheduled to detail the HRA budget for 2026/27, including the capital programme and recovery plan. It was noted that Lambeth Council is the second largest local authority landlord in London, with 23,600 socially rented homes. The HRA operates as a ring-fenced account for the management and maintenance of the council's housing stock and services to tenants and leaseholders. The report was to highlight the significant investment required for the ageing housing stock, estimated at £4.9 billion over 30 years, and the impact of government policies on rent reduction and caps. The HRA's financial recovery plan, aiming to balance the budget, increase reserves, and fund capital investment, was also to be discussed.

Dedicated Schools Grant (DSG) Budget 2026/27

The Cabinet was to consider the Dedicated Schools Grant (DSG) allocation for 2026/27, which is ring-fenced funding from the Department for Education (DfE) to support education services. The grant is divided into four blocks: Schools, Early Years, High Needs, and Central School Services. The report was expected to detail the proposed allocations for each block, noting that the DSG is forecast to move from a surplus to a significant deficit position in 2026-27, primarily driven by rising High Needs costs and the increasing number of Education, Health and Care Plans (EHCPs). The report was also to mention the government's pledge to cover 90% of High Needs deficits at 31 March 2026, subject to conditions, and the requirement for local SEND reform plans.

The meeting also included agenda items for Declarations of Pecuniary Interest and the Minutes of the Previous Meeting.