Raft of cuts to Lewisham services being discussed by council

A Lewisham Council meeting is to discuss a wide range of potential cuts owing to budget overspends this year.

The Sustainable Development Select Committee is covering numerous potential service reductions ranging from increased leisure centre fees to removing the mayor and speaker’s driver.

Much of the budget overrun comes from a lack of social and council housing, with the authority legally obliged to house many people presenting as homeless in expensive temporary accommodation. Homeless households continue to rise  rapidly as do costs.

Cuts will impact this year and into the future with the report noting reductions so far do not plug the growing gap:

“This work has resulted in the identification of £9.617m of combined cost avoidance and early savings delivery proposals for 2024/25, as well as a further £3.435m of base budget reductions and £13.410m of cost avoidance measures for 2025/26 and 2026/27.

“However, the cumulative totals of £4.739m of savings and £21.723m of recurring cost avoidance measures fall short of the respective £20m and £31.500m targets.”

Blame

It’s probably not unfair to say Lewisham have made a pig’s ear of obtaining funding in the face of severe government cuts. One obvious example is Community Infrastructure Levy income.

The authority have a poor record – much as neighbouring Greenwich have – in securing funding from developers. Rates were due to be revised in 2018 but after initial consultation changes were scrapped. Changes are now finally proposed for 2026 implementation. It’s also on the same meeting agenda.

In addition, building new social and council homes on public land hasn’t been a success while costs have rocketed. Vast sites have sat empty for 15 years such as Besson Street in New Cross – and even when built will see zero council homes.

In recent weeks plans went in for new housing in Catford on public land but despite the severe housing in the borough and resultant costs crises relatively few are council homes.

Meanwhile the council have been paying extremely high costs to buy existing homes off the market – which in turn deprives private renters of housing choice and more likely to present as homeless and needing assistance.

That compounds inadequate central government funding for housing under many administrations – and one the latest government did little to address at the budget.

Additional funding under the Affordable Housing Programme for just 1,000 additional homes in London next year was announced – and Lewisham alone has 3,000 households in temporary accommodation.

Combine it all and we’re seeing council across London and beyond heading to the wall – and making steep cuts throughout their departments to try to keep heads above water.

The substantial list of potential cuts can be seen at Agenda Item 4 here.