URL: https://moderngov.lambeth.gov.uk/ieDecisionDetails.aspx?ID=10054

Decision Maker:

Outcome: Recommendations Approved

Is Key Decision?: No

Is Callable In?: No

Purpose:

Content: The item was introduced by Councillor Claire Holland, Leader of the Council. The following points were highlighted:, ·       There were ongoing severe financial pressures, particularly in statutory services such as temporary accommodation, adult and children’s social care. The Council was facing a projected £20.38m overspend for the year, with the largest pressures in Housing Services (£19.99m), Adult Social Care (£8m), and Children’s, Families & Education (£6m). Management actions and spending controls were in place, with over 80% of planned savings for 2025-26 on track. Any shortfalls would be addressed within directorates. The reserves position was being reviewed, with plans to replenish and strengthen financial resilience. A borough-wide transformation programme was underway, including reducing director posts, a recruitment freeze, ending non-essential spending, and reviewing capital investments. Opportunities to raise capital receipts were being developed. The Council welcomed the government’s proposals for multi-year settlements but noted challenges for inner London boroughs in the current fair funding review.   Councillor Rezina Chowdhury 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.   RESOLVED:   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.  

Date of Decision: September 22, 2025