Mayor and Cabinet met on Wednesday 1 July 2026 to discuss a range of significant issues, approving key decisions on housing regeneration, acquisitions, and the provision of essential resident services. Key resolutions included the approval of a strategic partnership for the Building for Lewisham programme, the acquisition of 74 homes for temporary accommodation and refugee resettlement, and the procurement of a new borough-wide advice service.

Building for Lewisham: Approval of Contract Award for Strategic Partner and Capital Budget

Mayor and Cabinet approved the award of a Strategic Partnership Agreement (SPA) and Pre-Construction Services Agreements (PCSA) for the Thomas Lane Yard and Achilles Street Estate Regeneration projects. This partnership aims to accelerate the delivery of housing and regeneration schemes, ensuring greater control over quality, affordability, and social value. Councillor Daniel Dream, Cabinet Member for Inclusive Regeneration, Planning and Housing Delivery, highlighted that while all bids exceeded estimated works costs, only those aligning with the programme's NPV benchmark were deemed affordable. The decision recommends the approval of capital budgets for these phases to Full Council and delegates authority to the Executive Director for Place to finalise agreements.

Local Authority Housing Bid 4 - Housing Acquisitions

The council approved the acceptance of funding from the Local Authority Housing Fund Round 4 (LAHF4) to acquire an additional 74 homes. Councillor Daniel Dream stated this initiative is crucial given the over 2,300 households in temporary accommodation and more than 3,000 homelessness applications annually. The acquired homes will provide 65 units for temporary accommodation and 9 for refugee resettlement, aiming to reduce reliance on unsuitable and expensive accommodation. General Fund borrowing will support the acquisition and refurbishment, with authority delegated to the Executive Director of Place.

Permission to Procure for the Provision of a Borough-Wide Advice Service

Councillor Hau-Yu Tam, Cabinet Member for Communities, Sanctuary and Healing, presented the proposal to procure a new borough-wide advice service from April 2027. This service is deemed a lifeline for residents facing financial hardship, debt, and housing insecurity, with demand having risen sharply due to the cost of living crisis. The contract, with a maximum annual value of £950,000, will initially run for two years with an option to extend for three more, subject to funding. The service will offer a multi-channel approach, including a telephone advice line, digital access, targeted outreach, and early intervention, with an additional £350,000 per annum allocated from the Crisis Resilience Fund.

Capital Programme Update 2026/27

Councillor Rudi Schmidt, Cabinet Member for Finance, Resources and Economic Development, presented the latest capital programme update. Key decisions included agreeing the allocation of £0.86m from Capital Reserves for remedial works at the Mornington Centre and the use of £1m in insurance claim funds for reinstatement works at Rushey Green Nursery. A £10m contingency budget was also agreed for urgent risks and pressures across both the Housing Revenue Account (HRA) and General Fund (GF), funded by reserves. The report recommended these changes to Full Council, resulting in a net decrease of £2m for 2026/27 and an increase of £110.5m for 2027/28 onwards, totalling a net increase of £102.1m to the full Capital Programme.

Leaseholder Major Works Payment Options Review

Councillor Natalie Thomas, Cabinet Member for Safer Homes, Homelessness and Housing Services, introduced proposals to enhance payment options for resident leaseholders facing major works bills. For bills over £20,000, the repayment period will extend to 10 years, with the first five years interest-free. For bills exceeding £50,000, the interest-free period will be extended to seven years, followed by three years with interest. Additionally, a 15% discount will be offered for full upfront payment of any major works bill within 90 days. Councillor Thomas acknowledged ongoing concerns about leaseholder consultation and committed to an external review of these arrangements.

Housing Policies for Approval

Councillor Natalie Thomas also presented two housing policies for approval: the revised Vulnerable Residents Policy and the updated Lifts and Stairlifts Policy. The Vulnerable Residents Policy has been updated to incorporate recommendations from the Housing Ombudsman and Awaab's Law, focusing on recognising, recording, and responding to resident vulnerabilities with a person-centred approach. The Lifts and Stairlifts Policy has been revised for clarity, strengthening service standards, and including requirements for Higher-Risk Buildings (HRBs).

Permission to award the Integrated Community Equipment Service Contract (ICES)

Councillor Samantha Gardiner, Cabinet Member for Health, Wellbeing and Adult Social Care, sought approval to award the Integrated Community Equipment Service (ICES) contract to Medequip Assistive Technology Limited. The contract, valued at £13,168,562 over five years, will be funded by a 30% contribution from Lewisham Council and 70% from the South East London Integrated Care Board. The service provides essential equipment to help residents live independently at home, supporting hospital discharge and preventing avoidable admissions. The report noted that the tendered value exceeded the original estimate, necessitating Mayor and Cabinet approval.

Cleaner Streets Programme: Delivery Framework

Councillor Corin Ashwell, Cabinet Member for Environment, Nature, Transport and Climate Action, introduced the Cleaner Streets Programme, also known as the Love Lewisham Fly-Tipping Programme. This initiative aims to tackle the borough's significant fly-tipping problem, with approximately 43,000 incidents reported annually. The programme proposes a shift from reactive cleanups to a proactive, data-driven approach, integrating operational improvements, community engagement, and targeted enforcement. Key activities include a communications campaign, temporary additional collection crews, piloting time-banded waste collections, and a focus on high-harm fly-tipping hotspots. The estimated cost for the programme over two years is up to £1 million, to be funded through efficiencies and corporate budgets.

Financial Monitoring 2026/27 - Period 2 Monitoring

Councillor Rudi Schmidt presented the financial monitoring report for Period 2 (ending 31 May 2026). The General Fund is forecasting an overspend of £3.1m for the financial year, primarily due to increased demand in Adult and Children's Social Care. The Dedicated Schools Grant (DSG) has a forecast overspend of £4.5m on the High Needs Block. The Housing Revenue Account (HRA) is anticipating a break-even position. Council Tax collection stands at 94% against a target of 96%, and Business Rates collection is at 88% against a 99% target.

Medium Term Financial Strategy

Councillor Rudi Schmidt also presented the Medium Term Financial Strategy (MTFS) for 2027/28 to 2030/31. The strategy highlights significant financial challenges, with a projected budget gap of £64.469m over the four-year period under the base case scenario. This is attributed to uncertainties in government funding following the Spending Review period and wider economic risks. The report noted the reversal of a saving (CYP06) regarding a reduction in the Youth Service Budget for 2026/27, to be funded from Corporate Provisions. The strategy acknowledges the need for further savings identification and anticipates an MTFS update later in the year due to economic volatility.

Permission to procure Housing First service

Councillor Samantha Gardiner presented the proposal to procure a Housing First service for an initial two-year period from April 2027, with an option to extend for a further four years. The Housing First model supports rough sleepers with complex needs by providing stable housing and intensive, personalised support. The service, funded by the GLA's Single Homeless Accommodation Programme grant and the Homelessness Prevention Grant, aims to break the cycle of homelessness and promote independent living. The estimated annual cost is £292,204, with a maximum total contract value of £1,753,224 over six years, contingent on future funding.

Permission to award the Integrated Community Equipment Service Contract (ICES)

Councillor Samantha Gardiner also sought approval to award the Integrated Community Equipment Service (ICES) contract to Medequip Assistive Technology Limited. The contract, valued at £13,168,562 over five years, will be funded by Lewisham Council (30%) and the South East London Integrated Care Board (70%). The ICES provides essential equipment to help residents live independently at home, supporting hospital discharge and preventing admissions. The report noted that the tendered contract value exceeded the original estimate, requiring Mayor and Cabinet approval.

Exclusion of Press and Public

Mayor Liam Shrivastava noted that decisions taken under Part 1 of the agenda were sufficient to dispense with the need to go into a closed session to consider the corresponding Part 2 reports, concluding the public business of the meeting.