Council's budget recommended for approval
The report details the Council Tax rate to be agreed and housing rents to be set for the upcoming year. It also sets the Capital Programme (how we deliver new homes and maintain our schools, homes and corporate buildings) for the next four years and the Council's Treasury Management Strategy (strategy for borrowing and investments) for 2026/27.
Over the last year the Council has been undertaking a tough budget review to deliver the £30 million savings required next year to help recoup some of the reserves used this year (essentially topping up emergency savings account).
The Government recently finalised a three-year funding settlement for local councils. Lewisham’s Core Spending Power in cash terms, including Council Tax income, will gradually increase to be £33.5m a year more by 2028/29, compared to this financial year. However, taking into account increasing demand, rising service costs, interest rates and inflation, we will still need to find £35 million in savings over the next three years to set a balanced budget, as we are required to by law.
The Council welcomes the news that as part of SEND reform councils will have 90% of their SEND-related historic deficits written off. While this relief partly lessens the pressure on SEND provision, there is still an overspend of £3 million, so the challenge remains for future years.
To date, with strong financial management the Council has been able to deliver necessary savings while maintaining the vital services residents rely on.
Mayor of Lewisham, Brenda Dacres OBE, said: “We are doing everything we can to balance our budget, make efficiencies and work with the Government for a fairer deal for Lewisham.
“I want to reassure residents that while savings have to be made, we continue to fund the important services we all need and value, like community safety, parks, libraries, leisure centres, youth services and waste collection services.
“We are proud of the work we do that we know makes a difference to those who need it most, from free school meals so no child goes hungry during school holidays, to making sure our Family Hubs are available all over the borough, to strengthening our jobs and skills offer, especially for our young people.”
Cllr Amanda de Ryk, Cabinet Member for Finance, Resources and Performance, said: “Reports of councils across the country going bankrupt have become increasingly common as they feel the result of years of chronic underfunding of public services. Budgets have also been affected by a growing demand for services, as more and more people turn to their local council for support, particularly for temporary accommodation, children’s services and adult social care.
“I am proud that despite the budget challenges we have faced, and savings having to be made, we have still delivered a responsible budget that clearly helps those who need it most.”
Budget Council will sit at 7.30pm on Wednesday 4 March 2026.