Lewisham Council Passes 2026/27 Budget with Significant Cuts and Investments
Lewisham Council has officially approved its budget for the 2026/27 financial year, a plan that includes £30 million in immediate cuts and savings, with an additional £35 million required over the next three years. The budget, voted through during a meeting on March 4, 2026, also features a 4.99 per cent increase in council tax, set to take effect from April. This rise translates to an additional £102.20 annually for the average Band D household, bringing the total bill to £2,237.33.
Major Savings and Service Impacts
The most substantial reductions target the Children and Young People portfolio, with £7.09 million in savings identified, followed by Adult Social Care and Health, which faces a £5.57 million cut. These measures involve reviewing care home placements and managing vacancy factors. Other savings include reducing the maximum council tax reduction scheme from 75 per cent to 50 per cent, saving £1 million, and trimming the temporary accommodation budget by £2.49 million.
Cllr Amanda De Ryk, Cabinet Member for Finance, Resources and Performance, defended the budget, stating that all proposed savings are "measured, deliverable and protect frontline services." She emphasized that the council's four-year capital programme exceeds half a billion pounds, with nearly half to be spent in the coming year, focusing on housing improvements and social housing initiatives.
Investments in Infrastructure and Regeneration
Despite the cuts, the budget allocates £5.1 million for road resurfacing and footway improvements across the borough. Additionally, ongoing regeneration projects in Lewisham and Catford town centres will continue, supported by a broader investment strategy. Cllr James Rathbone highlighted that the council plans to invest over £600 million over the next five years to enhance housing stock, high streets, parks, libraries, and public spaces.
Political Opposition and Alternative Proposals
The Lewisham Green Group strongly opposed the Labour administration's budget, with Cllr Liam Shrivastava, Leader of the group, criticizing it as "delivering more of the same that we saw from the Tories" and labeling the cuts "devastating." He argued that the budget fails to address the cost-of-living crisis and deepening inequality in the community.
The Greens presented an alternative budget, which included a 20 per cent pay cut for Lewisham Mayor Brenda Dacres and senior cabinet members, along with expanding the Housing Acquisition Programme by 100 properties to reduce reliance on private temporary accommodation. However, this proposal was voted down, and the Labour budget was ultimately passed.
Future Challenges and Community Concerns
Following the meeting, Cllr Shrivastava expressed concerns about the budget's impact on vulnerable residents, citing the administration's own risk assessments. He stated, "The fact Labour voted against reversing them shows that they are no longer on the side of ordinary working people." The debate underscores ongoing tensions as the council balances financial constraints with the need for essential services and infrastructure upgrades in Lewisham.
