Lambeth Council’s finances are under scrutiny amid auditor concerns. Political parties clash over alleged mismanagement.
Lambeth Council’s finances are under scrutiny amid auditor concerns. Political parties clash over alleged mismanagement.
South London Council Faces Financial Trouble, Auditors Issue Warning
Labour blames previous governments, citing austerity policies. Auditors sent a letter back in February, urging “immediate action” and highlighting the need for savings for 2024/25 overspending.
Lambeth must ensure savings are achievable for 2025/26, said auditors. They failed to save £3.8 million last year, carrying this amount into next year.
The auditors want the cash reserves replenished for daily costs and services, desiring a more “prudent” level. Forecasts show no cash in 2024/25, extending over four years.
The council must also replenish housing reserves that cover housing costs. They asked for a £40 million bailout in January to balance housing finances.
The housing account faced a large overspend of £25 million, forecast for 2025/26 and deemed illegally large. The government approved the bailout, potentially leading to the sale of council houses to repay it.
Homes for Lambeth (HfL) remains an issue as the council hasn’t regained control. HfL builds homes, but progress is slow, leading the council to shut it down after an independent report labeled it “very poor”.
Auditors want housing services brought “in-house”, specifically those managed by Homes for Lambeth. They also want the financial impact determined, including its effect on reserve levels.
The Green Party says the problem is “mismanagement”, blaming Labour’s leadership. They cite decades of mismanagement that has led to “financial woes.” Labour caused the expensive and failed HfL.
They agreed to sell council homes and neglected estate maintenance, resulting in millions spent on disrepair compensation. The Green party accuses Labour of mismanaging contracts and governance.
Lib Dems also attacked Labour’s leadership, calling them “out of its depth.” They fear the same problems as Croydon, which also faces financial problems now. Lib Dems want HfL brought back sooner, warning that not doing so puts local services at risk. They state this cannot continue any longer and needs to be resolved,
Labour stated they protect services despite 14 years of austerity cuts from previous Conservative and Lib Dem governments. The council’s spending power dropped by over 20 percent since 2010.
Housing homeless families costs a lot, expected to reach £100 million. Labour calls the opposition opportunistic and claims they ignore the “fundamental facts.”
Labour continues to invest in services, supporting many people amidst cost increases.
Labour blames previous governments, citing austerity policies. Auditors sent a letter back in February, urging “immediate action” and highlighting the need for savings for 2024/25 overspending.
Lambeth must ensure savings are achievable for 2025/26, said auditors. They failed to save £3.8 million last year, carrying this amount into next year.
The auditors want the cash reserves replenished for daily costs and services, desiring a more “prudent” level. Forecasts show no cash in 2024/25, extending over four years.
The council must also replenish housing reserves that cover housing costs. They asked for a £40 million bailout in January to balance housing finances.
The housing account faced a large overspend of £25 million, forecast for 2025/26 and deemed illegally large. The government approved the bailout, potentially leading to the sale of council houses to repay it.
Homes for Lambeth (HfL) remains an issue as the council hasn’t regained control. HfL builds homes, but progress is slow, leading the council to shut it down after an independent report labeled it “very poor”.
Auditors want housing services brought “in-house”, specifically those managed by Homes for Lambeth. They also want the financial impact determined, including its effect on reserve levels.
The Green Party says the problem is “mismanagement”, blaming Labour’s leadership. They cite decades of mismanagement that has led to “financial woes.” Labour caused the expensive and failed HfL.
They agreed to sell council homes and neglected estate maintenance, resulting in millions spent on disrepair compensation. The Green party accuses Labour of mismanaging contracts and governance.
Lib Dems also attacked Labour’s leadership, calling them “out of its depth.” They fear the same problems as Croydon, which also faces financial problems now. Lib Dems want HfL brought back sooner, warning that not doing so puts local services at risk. They state this cannot continue any longer and needs to be resolved,
Labour stated they protect services despite 14 years of austerity cuts from previous Conservative and Lib Dem governments. The council’s spending power dropped by over 20 percent since 2010.
Housing homeless families costs a lot, expected to reach £100 million. Labour calls the opposition opportunistic and claims they ignore the “fundamental facts.”
Labour continues to invest in services, supporting many people amidst cost increases.