Lewisham council will need to make further savings of almost £36m over the next three years despite making cuts of £30m in this year’s budget and increasing council tax by 4.99 per cent.
The council said increasing demand for its services, rising costs, and inflation would require further savings but “strong financial management” had ensured a balanced budget over the coming year.
Mayor Brenda Dacres said “despite the budget challenges the council remains ambitious for the future”. The council would continue “to prioritise frontline services that make a difference to people’s lives”.
The council acknowledged that under a three-year government funding package for councils Lewisham would receive an additional £33.5m, helping to reduce the savings required.
In 2026-27 services for children and young people face the largest cut of more than £7m with adult social care and health facing savings of £5m.
But the council will continue to invest in housing and the improvements in the Catford and Lewisham town centres. It has also set aside £5m for road resurfacing.
Despite the additional government funding this year council finances remain under severe strain. It is estimated councils have suffered a 27 per cent cut in funding since 2010.
The demand for services continues to rise, especially for statutory services like social care and homelessness support.
Based on current trends in service demand and expected government funding levels, London councils anticipate a cumulative £4.7bn shortfall for boroughs in the four-year period 2025-26 to 2028-29.
For the 2026/27 financial year, the Band D council tax in Lewisham is projected to be approximately £2,237. This includes a 4.99% increase to cover funding pressures for social care and services. For the current 2025/26 year, the rate is £2,135.13.