Lambeth Council has called for urgent help in the Government’s Budget next month, at a time it said ‘could not be more critical’ for local authorities.
The London borough council said it faced a £70m funding gap over the next four years, largely driven by its rising temporary accommodation bill.
There are 4,600 families housed in temporary accommodation across the borough – 1,300 more than two years ago – costing the council £28m a year.
Council leader Claire Holland, who is also the chair of London Councils, said: ‘Lambeth’s core spending power in real terms has reduced significantly since 2010, despite population increases, rising demand for social services and increased responsibilities from central government.
‘Without action in the budget, the scale of our overspend in temporary accommodation means we’ll need to consider even more drastic savings in other services, services that many people value and rely on.’
The call comes after London Councils warned that boroughs in the capital faced a £600m overspend this year as housing and homelessness pressures ‘wreak havoc’ on their finances.
