Lewisham Residents Confront Maximum Council Tax Increase Amid Financial Strain
Residents of Lewisham are bracing for a significant financial burden as the local council has approved a maximum council tax hike of 4.99 per cent for the upcoming fiscal year. This increase, set to take effect from April 2026, will see Band D households facing an annual bill of £2,237.33, marking a rise of £102.20 compared to the previous year.
Breakdown of the Tax Increase and Budget Pressures
The 4.99 per cent rise is composed of two key components: a 2.99 per cent increase in core council tax and an additional 2 per cent specifically allocated to adult social care. Lewisham Council has justified this move as necessary to address "recognised funding pressures" and escalating demands for essential services, including temporary accommodation and social care support.
Of the total bill, £510.51 is attributed to the Greater London Authority (GLA) precept, which funds critical services such as police, fire, and transport across London. This amount is collected by the council on behalf of the GLA, adding to the overall financial load on residents.
Substantial Budget Cuts and Savings Measures
In a bid to balance the books, the council has outlined a series of drastic budget cuts totaling nearly £30 million that must be implemented by 2026/27. The most severe reductions target Children and Young People services, with savings of £7.09 million identified. Adult Social Care and Health faces cuts of £5.57 million, which will involve reviewing care home placements that provide one-to-one care and managing vacancy factors more tightly.
Further savings include a reduction in the maximum council tax reduction scheme from 75 per cent to 50 per cent, expected to save £1 million, and a temporary accommodation cost reduction of £2.49 million. These measures reflect the council's efforts to navigate a challenging financial landscape shaped by years of diminished funding from central government.
Leadership Perspectives and Future Challenges
Mayor of Lewisham, Brenda Dacres, addressed Cabinet members, acknowledging the severity of the situation. She noted that while government support has reduced the required savings from £50 million to £35 million over the next three years, the council still faces a "serious challenge." Dacres emphasized a commitment to "careful, responsible, and value-driven" approaches, aiming to secure the council's financial footing while protecting vital services.
She highlighted ongoing investments in Lewisham's future, including funding for housing, regeneration, education, skills, and the local environment. Dacres stated, "This budget reflects difficult but necessary choices in a challenging financial environment, but it also reflects a Labour council that believes in strong public services and long-term planning."
Financial Updates and Next Steps
During the meeting, Cllr Amanda De Ryk, Cabinet Member for Finances, Resources and Performance, announced a last-minute boost to the council's Core Spending Power, which increased from £422 million to £426 million due to changes in the Local Government Finance Settlement. This adjustment provided a slight reprieve but did not alter the overall need for tax increases and cuts.
The Mayor and Cabinet have agreed to the budget recommendations, with the full council set to vote on the plans at the next meeting on Wednesday, March 4. As Lewisham moves forward, residents and officials alike remain focused on balancing fiscal responsibility with the delivery of essential community services in an era of continued financial pressure.
