Lambeth Council is bracing itself for a difficult financial year, with a forecasted £34.3 million overspend, according to the Quarterly Performance and Budget Report for Quarter One 2024-25, set to be presented to Cabinet at the Town Hall on October 7th.
Led by Councillors Fred Cowell and Nanda Manley-Browne, joint Cabinet members for Equalities, Governance, and Change, this report is a key assessment of progress under the Our Future, Our Lambeth policy, which was approved in March 2023.
The report, essentially a state-of-the-borough review, reveals troubling financial shortfalls, unmet performance targets, and serious challenges in housing and public health.
The Housing Crisis: A Major Strain on Resources
The most pressing issue facing the Council is the overwhelming demand for temporary accommodation, a key factor behind the £34.3 million in-year overspend.
The number of households in temporary accommodation has reached 4,628, while 448 people seeking asylum were living in Home Office-provided housing in Lambeth as of July 2024.
These pressures, coupled with the rising cost of living, have created an untenable situation for many residents. A striking 38% of residents believe they will struggle to pay their rent or mortgage in the coming year, a figure that underscores the severity of the housing crisis in the borough.
The Council has also fallen short in maintaining housing standards. Under the objective of making Lambeth a Place Residents Can Call Home, 11.6% of Lambeth’s properties have failed to meet the Decent Homes Standard.
Issues such as incomplete gas safety checks and delays in addressing mould are exacerbating the problem, with the Council admitting that further work is required to meet safety standards.
Lambeth’s ambitious plan to retrofit its housing stock to meet modern environmental and safety standards is also facing significant delays.
The report estimates that £1 billion will be needed to complete the borough-wide retrofitting project. However, the Housing Revenue Account, already under immense pressure, cannot currently support any additional investment.
While some progress has been made, including retrofitting 31 schools with decarbonisation measures, the housing retrofit project is far behind schedule.
Performance Indicators: Falling Short of Targets
Of even greater concern is the overall performance of the Council, with only 69% of its targets achieved for the first quarter of 2024-25.
This has raised questions about the effectiveness of the Our Future, Our Lambeth policy, which aimed to address issues across neighbourhoods, safety, and housing.
Some successes were noted, such as an impressive 96.53% of children aged 16 and over having a pathway plan. However, these gains are offset by the stark failures in housing and health.
Public Safety: Progress and Persistent Challenges
One of the key pillars of Our Future, Our Lambeth is making the borough one of the safest in London. The Council has made some headway in this regard, particularly in the area of sustainable transport.
81% of journeys in Lambeth were made by walking or cycling in 2023-24, following the implementation of projects such as Healthy Routes, School Streets, and Low Traffic Neighbourhoods.
The installation of 415 cycle hangers and 116 lamp post charging points for electric vehicles (with an additional 167 planned) further bolsters the Council’s green transport initiatives.
However, these successes in infrastructure and transport have done little to address deeper concerns around youth violence and substance abuse.
Youth violence remains a significant problem in the borough, and despite efforts to address the issue, little progress has been made.
The number of residents in treatment for substance abuse has continued to rise, reflecting the complex social challenges Lambeth continues to face.
Public Health Crisis: Life Expectancy and Food Insecurity
46% of Lambeth residents report having a long-term health condition, while 21% of residents use health centres on a monthly basis.
The report highlights the growing problem of food insecurity, with 26% of residents fearing they will not be able to afford food in the coming year.
Currently, 4,682 residents are reliant on food banks, a number that is expected to grow as the cost of living crisis deepens.
Financial Performance: A Bleak Outlook
The financial strain on Lambeth Council is severe, with the £34.3 million overspend described as “unsustainable.” Adult social care is one of the key contributors to the budgetary shortfall, accounting for £7.4 million of the overspend.
Despite these challenges, there are some areas of financial respite. The Dedicated Schools Grant shows a £2.6 million underspend, which will help mitigate the overall budget crisis.
In an attempt to stem the financial bleeding, the Council has paused all new recruitment except in limited circumstances
Lambeth is also looking to recruit a new Chief Executive, and in the meantime, acting Chief Executive Fiona Connolly is reviewing the Chief Executive budget, which currently requires a £200,000 contribution from reserves to remain balanced.
This sounds like she is setting herself up for a major pay cut, should she be successful in landing the position full time.
The Council is also taking steps to end all agency placements and has immediately ceased consultancy and advisory contracts in an effort to save money. Meanwhile Brixton Buzz continues to report how ‘consultancy fees’ make up major budget spends.
Critical Challenges and Political Fallout
The report places significant blame on central government, pointing to years of austerity under previous Conservative administrations as the root cause of the financial difficulties.
Lambeth’s Labour-led Council has called the overspend “unsustainable” and has warned that without intervention from the new Labour government, the borough’s financial and social crises will worsen. It remains to be seen whether national policymakers will heed Lambeth’s calls for support.
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