Dear resident, 

Lambeth Council last week agreed our 2021-22 budget, a budget that will maintain front-line services and help address funding gaps caused by the demands of tackling the Covid-19 crisis. I wanted to update you on some of the measures taken to protect these vital services and support some of Lambeth’s most vulnerable people.

Covid-19 crisis

It has been a testing year for our communities and a traumatic one for many of our residents. Since last March, the Council has needed to make essential extra spending to support vulnerable people, while at the time suffering a significant loss of income as a direct result of the crisis. This extra spending has included thousands of food packages for vulnerable people, millions in support for small businesses and increased support for care homes, contributing to an overspend of £44.5m.

Insufficient funding from government

This has come on top of funding pressures Lambeth has been dealing with for more than a decade in essential services, like Social Care and Temporary Accommodation. The government has also failed to fully reimburse councils for that additional Covid-19 spending. Despite this, the Council’s prudent financial management means we have been able to set a balanced budget, through a mixture of income generation, savings and use of reserves.

But significant challenges remain, as the funding that the council has for essential services from central government grants is not sufficient to meet the rising needs in our population. Councils across the country will be forced to raise Council Tax to meet these needs or make further cuts elsewhere.

The Council has been forced by central government to raise Council Tax to maintain council services and stay on a sustainable financial footing. This will mean that Council Tax will rise by 1.99% alongside a 3% ‘precept’ for Adult Social Care which the government has asked councils to do instead of providing funding. Despite this, Lambeth’s Council Tax rate remains one of the lowest in London.

Supporting our communities

We know many of our residents will have experienced crises due to the pandemic. Which is why we are increasing Council Tax Support which will help the poorest residents in Lambeth, as well as providing more funding for people who need emergency financial help, benefits advice or help paying their rent. If you need help, please visit the Lambeth website to find out what support is available.

As an administration we are committed to helping the most vulnerable, expanding the welfare safety net for people in financial difficulty so more people can receive the support they need. We will continue to be on the side of local people at a time of hardship and take every opportunity to support the most vulnerable in our communities.

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Yours sincerely,

Cllr Andy Wilson

Cabinet Member for Finance and Performance