The Cabinet of Lambeth Council met on Monday 23 February 2026, approving the refreshed Borough of Sanctuary Strategy and noting the council's successful reaccreditation for this status. The meeting also saw the approval of the Quarter 3 2025/26 Budget Monitoring Report and the Revenue and Capital Budget for 2026/27, alongside the Medium-Term Financial Strategy for 2026/27 to 2029/30.

Borough of Sanctuary Strategy

Cabinet approved and adopted the Lambeth Borough of Sanctuary Strategy for delivery between 2025 and 2028. This strategy, which follows Lambeth's successful reaccreditation as a Borough of Sanctuary by the City of Sanctuary organisation, outlines the council's vision to improve access to support for all people seeking sanctuary and to amplify the voices of those with lived experience. The strategy is a key part of Lambeth's 2030 Borough Plan, reinforcing the commitment to making Lambeth a borough of equity and justice. The strategy focuses on six themes: promoting integration and access to accommodation, strengthening communication and awareness of rights and services, expanding access to education, skills and employment, enhancing health and wellbeing support, strengthening safeguarding, and ensuring young people seeking sanctuary receive the support they need to thrive. The strategy is fully funded through central government grants.

Quarter 3 2025/26 Budget Monitoring Report

Cabinet approved the recommendations within the Quarter 3 2025/26 Budget Monitoring Report. The report detailed the council's financial position, highlighting a forecast year-end overspend of £17.1 million on the General Fund, a decrease of £0.5 million from the Quarter 2 forecast. This overspend is primarily driven by pressures in temporary accommodation, adult social care, and children's services. Management actions are being taken to reduce the forecast overspend, and the report noted progress on savings delivery. The Housing Revenue Account (HRA) is forecasting an underlying surplus of £10.7 million, which includes £40 million of Exceptional Financial Support (EFS) from the government to address disrepair costs. The Dedicated Schools Grant (DSG) is forecasting an overspend of £10.512 million, primarily in the High Needs Block. Cabinet also approved a proposal to optimise support for Home to School Transport assistance to reduce costs from 2026-27.

Revenue and Capital Budget 2026/27 and Medium-Term Financial Strategy 2026/7 to 2029/30

Cabinet approved the recommendations for the Revenue and Capital Budget for 2026/27 and the Medium-Term Financial Strategy (MTFS) to 2029/30. The report outlined Lambeth Council's path to financial sustainability, strengthening its finances to protect and deliver services residents care about most. This includes setting a balanced budget for 2026/27 through decisive action, despite a decade of austerity and rising demand for services. The budget prioritises delivering good public services, looking after vulnerable children, protecting spending on street cleaning, and maintaining high levels of support for services that protect women and girls who have survived domestic abuse and violence. The budget includes £27 million for the Council Tax Support Scheme for 2026/27, supporting tens of thousands of households. The report also detailed the updated Capital Strategy, focusing on long-term sustainability and reducing debt servicing. The Council is proposing to raise Council Tax by 2.99% and the Adult Social Care precept by 2% for 2026/27. The report also noted the council's application for £116 million of Exceptional Financial Support (EFS) from the government to rebuild reserves and balance the budget. The Housing Revenue Account (HRA) budget for 2026-27 was also agreed, aiming to increase reserves to over 10% of turnover within five years. The Dedicated Schools Grant (DSG) is forecast to move into a deficit position of £12.3 million by the end of 2026-27, driven by the High Needs Block, though government support for High Needs deficits was noted. The report also included proposed increases to fees and charges, and the revised Capital Investment Programme.

The Cabinet also approved the Flexible Use of Capital Receipts Policy, which allows the council to use capital receipts from asset sales to fund revenue costs of service reform and transformation projects until 2030. This policy aims to support projects that reduce costs, increase revenue, or enhance service efficiency, and will be reviewed annually. The policy acknowledges the opportunity cost of using capital receipts for revenue projects, as it reduces their availability for debt repayment or capital programme funding.

Finally, Cabinet approved the Treasury Management Strategy and associated prudential indicators, the Capital Strategy, the Minimum Revenue Provision (MRP) policy, and the Reserves Policy. The Reserves Strategy aims to maintain General Fund reserves at 10% of the net revenue budget, an estimated £45 million, to improve financial resilience.