Lambeth Council Demands Austerity Reversal from New Prime Minister

July 22, 2026

South London News On Your Doorstep Desk Edited By Jimmy Nsubuga

Lambeth Council has formally called on the new Prime Minister, Andy Burnham, to address the "disastrous impacts" of austerity on the borough. In a letter sent on Mr Burnham's first day in office, Council Leader Martin Abrams outlined a series of demands aimed at reversing years of financial and social challenges faced by local authorities.

The council's primary concerns centre on the need for increased funding and greater financial autonomy. Councillor Abrams highlighted that Lambeth, along with three other boroughs, was excluded from "Fair Funding" review transitional protections, resulting in a £47 million deficit over three years. This situation has reportedly forced the council into Exceptional Financial Support (EFS) and raised concerns about potential asset sales to balance its budget.

Social Housing Revolution and Right to Buy

A key demand from Lambeth Council is the reversal of austerity measures and the initiation of a "social housing revolution" to combat the housing emergency. The council is advocating for the scrapping of the Right to Buy social housing policy, arguing that it has contributed to a significant decline in social housing availability across the UK. Instead, they propose that local authorities be provided with low-interest loans to enable them to build more council houses.

The impact of Right to Buy has been substantial, with 2.8 million homes sold across the UK by March 2025, leading to a sharp decrease in social housing stock and increased pressure on renters. Critics argue that the policy, while offering home ownership opportunities, has not seen sufficient reinvestment in replacement homes, contributing to a lasting reduction in social housing supply.

Financial Demands and Service Impacts

Beyond housing, Lambeth Council is requesting that councils be allowed to retain the proceeds from the Mansion Tax and the Overnight Levy. This would provide additional revenue streams to help address the strain on local services. The council also called for a fix to the "broken Children's Services market," which they claim sees private companies profiteering from vulnerable individuals.

The letter from Councillor Abrams underscores the broader impact of austerity on local government, stating that a decade of cuts has "hollowed out councils' ability to deliver the services residents rely on." This has led to increased demand for services such as temporary accommodation for homeless households, with over 4,500 such households currently in Lambeth. The average cost of temporary accommodation in London has risen by 75% over the last five years.

Author

South London News On Your Doorstep Desk Edited By Jimmy Nsubuga

From Town Hall decisions to resident-led reports, the South London News On Your Doorstep Desk offers comprehensive coverage of the issues that matter to your street. Our editorial staff provide critical updates on local planning, council services, and neighbourhood initiatives, ensuring our readers never miss a change to their local area.

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