Lambeth Council’s budget for 2026/27 has been approved, which includes a significant savings package and a 4.99 per cent council tax increase.
The Labour administration’s proposals were formally voted through during the annual budget setting meeting on Wednesday evening (March 4).
Cllr Judith Cavanagh, Cabinet Member for Finance, said the budget “builds on a record of delivery of serious improvements in our council services”. She went on to say the budget is “on the side of our residents with our Lambeth values of equity and justice running right the way throughout”.
The council says this year’s budget includes £250 million of investments into adult social care and health, £130 million supporting children and their families, £98 million on housing homeless families in the borough and £55 million on tackling antisocial behaviour and Violence Against Women and Girls and Lambeth’s young people.
However in order to balance the books, Lambeth Council has had to find more than £99 million of savings which will need to be implemented from 2026/27 to 2028/29. It is estimated over £130 million of savings will still need to be found over the next four years.
The council is also relying on a government bailout in the form of Exceptional Financial Support (EFS). An application for £116 million was made in December 2025 and as of February 2026, the council was still awaiting an outcome.
One way the council is generating more income is by increasing its on-street and off-street car parking charges by up to 49 per cent, which is expected to raise £2.8 million in additional income in 2026/27. The council has also announced a review and restructure of its parks operations across the borough, which is set to make £702,000 in savings.
Elsewhere, the council intends to make changes to post-16 SEND (Special Education Needs and Disabilities) travel support by ending non-statutory transport provision, which is expected to make £350,000 in savings.
Existing hostel accommodation is expected to act as ‘out-of-hours provision’ for temporary accommodation as the council intends to end the use of hotels for homeless families, which is estimated to make £1.2million in savings.
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The council tax hike will come into force from next month and is made up of a 2.99 per cent increase in core council tax, and a 2 per cent increase in adult social care. For a Band D household in Lambeth, the annual council tax bill for 2026/27 will be £2,047.11. This also includes a Greater London Authority (GLA) precept of £510.51 which helps fund police, fire and transport services across London.
During last week’s meeting, Cllr Nicole Griffiths from Lambeth Greens said the proposed savings were “disastrous” for the borough’s vulnerable residents, and described them as “hitting people where it really hurts and there’s no pretending otherwise”.
Cllr Ben Curtis from Lambeth Lib Dems said “Lambeth’s finances are in a worse shape than any of us can ever remember”, and said the budget “only balances because of a last-minute government bailout”.
The Lib Dems said their amended budget was “balanced, fully costed and honest about what’s possible”, and included plans to reduce Lambeth’s Cabinet by three posts and suggested the council pool some resources as a way of saving money.
Despite this, neither the Lambeth Lib Dems’ and the Lambeth Greens’ proposed budget amendments were voted through. Ultimately the original budget prepared by the Labour administration was carried.
