The Council Assembly of Southwark Council met on Wednesday 25 February 2026 to set the budget and council tax for 2026-27. Key decisions included the approval of the final balanced budget, which incorporates an increase in Southwark's local Council Tax of 4.99%, and the noting of the Greater London Authority's proposed precept. The Assembly also formally moved and resolved the item concerning the proportionality and allocation of seats on committees.

Policy and Resources Strategy: 2026-27 Budget and Medium Term Financial Strategy

The Council Assembly approved the final balanced budget for 2026-27, which includes an additional £2.6 million in funding from the Final Local Government Finance Settlement. This additional funding is to be allocated to increase the budget for Temporary Accommodation. The Assembly also noted the draft budget presented in the 2 February 2026 Cabinet report, which outlined the budget following the provisional settlement. The council will set the council tax on 27 February 2026 via the Council Tax Setting Committee, following confirmation of the final GLA precept on 26 February 2026.

The report detailed changes from the Provisional Settlement, including an uplift of £2.4 million to the Recovery Grant, which will be used to support Temporary Accommodation demands and cost pressures. An additional £0.2 million has been allocated through the Homelessness, Rough Sleeping and Domestic Abuse Grant, ring-fenced to support housing needs. The Public Health Grant has also been updated for 2025-26 to include the additional in-year cost impact of NHS pay awards for health services commissioned by local authorities and funded through the public health grant, resulting in an increase of £0.2 million for Southwark.

The Medium Term Financial Strategy (MTFS) has been updated to reflect these changes, with the budget for 2026-27 remaining balanced. However, the cumulative MTFS gap remains at £80.94 million. The report also detailed the Housing Revenue Account (HRA) budget, which continues to face significant financial pressure due to historic rent restrictions, unfunded regulatory requirements, high construction and repair costs, and elevated borrowing rates. Rents are set to increase by 4.8% in line with the government's 10-year rent settlement formula of CPI +1%.

The report also included a Section 151 Officer's comment on the robustness of the budget estimates and the adequacy of the proposed financial reserves, confirming that the general fund reserves are considered adequate for short to medium-term resilience. However, the HRA reserves are noted as being low, and replenishment is a key part of the HRA budget plans.

Two amendments were proposed to the report:

• Amendment A – Let's Fix Southwark: Moved by Councillor Victor Chamberlain and seconded by Councillor Rachel Bentley. This amendment sought to tackle the cost of living crisis, make Southwark cleaner, greener, and safer, and improve public services. It proposed a one-off fund of £2.3 million for council tax reductions, an additional £1 million for the cost of living fund, and exemptions from council tax for those who are terminally ill. It also aimed to double the number of community safety wardens, launch a new community infrastructure fund, abolish the bulky waste collection charge, and explore new youth facilities and green spaces. The amendment was lost.
• Amendment B – Fast and Free Buses for Young Adults: Moved by Councillor James McAsh and seconded by Councillor Reginald Popoola. This amendment proposed a one-year pilot scheme providing free bus travel for at least 1,000 Southwark residents aged 19-21, prioritising care leavers, young people previously eligible for Free School Meals, and those living in areas with lower Public Transport Accessibility Levels (PTAL). It aimed to negotiate with Transport for London for bulk-purchase or concessionary rates and allocate funding for outreach and independent evaluation. The amendment was lost.

Following the debate, a recorded vote was taken on the substantive motion. The motion was carried with 43 votes in favour, 0 against, and 14 abstentions.

The Council Assembly approved:

• The allocation of £2.6 million additional funding from the Final Local Government Finance Settlement to increase the budget for Temporary Accommodation.
• The final balanced budget as detailed in Table 2 of the report.

The Council Assembly also noted:

• The 2 February 2026 Cabinet report outlining the draft budget following the provisional settlement.
• That the council tax will be set on 27 February 2026 via the Council Tax Setting Committee, following confirmation of the final GLA precept on 26 February 2026.
• An increase in Southwark's local Council Tax for 2026-27 of 4.99%.
• The Strategic Director of Resources' Section 25 statement confirming the robustness of budget estimates and sufficiency of reserves.

Setting the Council Tax 2026-27

The Council Assembly approved the 2026-27 Southwark element of the council tax for band D properties, including an increase of 2.99% for the council and 2.00% for the adult social care (ASC) precept, to be set at £1,456.75. The Assembly also approved existing local war disability and widow/widowers' schemes for housing benefit and agreed that no discount would be applied to properties in the former parish of St Mary Newington for 2026-27. A Council Tax Setting Committee was established to set the Council Tax for 2026-27, with its role, functions, matters reserved, and political composition agreed. The Assembly also noted the Greater London Authority's (GLA) proposal to set a precept of £510.51 for band D properties, which would be considered on 26 February 2026. The formal resolution for Southwark council taxes in 2026-27 was noted, and it was confirmed that a special Council Tax Setting Committee would meet on 27 February 2026 to allow council tax notices to be issued within the statutory timetable.

The vote on the substantive motion was carried with 48 votes in favour, 0 against, and 8 abstentions.

Treasury Management Strategy and Capital Strategy 2026-27

The Council Assembly approved the Treasury Management Strategy and Capital Strategy for 2026-27, along with its appendices, which include the Treasury Management Strategy Statement, Interest Rate forecasts, Prudential Indicators, Annual Investment Management Strategy, Capital Strategy, Annual Minimum Revenue Provision, and a Glossary. Councillor Hamish McCallum declared a disclosable pecuniary interest in this item due to his partner working for KPMG, the council's auditor. He left the room for this item and took no part in the decision-making. Following debate, the recommendations within the report were put to the vote and carried.

Proportionality and Allocation of Seats on Committees

The Council Assembly noted the updated political balance of the council, with Labour having 46 members (73.02%), Liberal Democrats 11 members (17.46%), Greens 3 members (4.76%), and Independent members 3 members (4.76%), totalling 63 councillors. It was also noted that for the purpose of calculating committee seat allocations, only political groups with more than one member are considered. Changes to proportionality were noted, and the new allocation of seats on committees, as set out in Tables 2, 3, and 4, was agreed. The report detailed the allocation of seats across various committees, including Ordinary Committees, Other Committees, and Scrutiny Commissions, reflecting the updated proportionality following changes in party membership.

The meeting closed at 9:45 pm.