The budget was formally approved at the Council Assembly last night (Wednesday 26 February).
Despite ongoing financial pressures, including rising costs in temporary accommodation and wider economic uncertainty, the council remains committed to protecting and investing in key local services including the council’s free school meals programme, new libraries, quality parks, free swim and gym and the cost of living fund.
Last night the council also approved £2 million new investment from the Southwark 2030 reserve to go towards the following areas:
- The council will allocate £600,000 to making Southwark safer at night, with new Nighttime Antisocial Behaviour Officers to help tackle the harassment of women in local bars and clubs.
- A further £520,000 will go towards addressing high levels of eviction by friends and family – the main cause of homelessness in Southwark. The council will establish a new support and resettlement service for people placed in out-of-borough Temporary Accommodation and a new Southwark Temporary Accommodation Action Group.
- The council will invest £440,000 to transform the closed Ann Bernadt Nursery school into a dedicated centre supporting children and young people aged 0-25 with Special Educational Needs and Disabilities (SEND) and their families.
- An additional £360,000 will be invested in cleaning our streets and estates, clamping down on people who fly-tip in our borough.
- Finally, £80,000 will go towards extending the council’s Southwark Energy Savers Scheme to support residents through the ongoing cost of living crisis.
The balanced budget was achieved by careful planning and the council-wide transformation programmes set to deliver £10 million of efficiencies in 2025-26 and 2026-27.
The council’s budget has also been bolstered by central government with additional funding for the Homelessness Prevention Grant, Adults and Children’s Social Care and funding from the Recovery Grant. This will all go towards supporting areas under financial pressure. The council also welcomed a one-year funding settlement from government and a commitment to a comprehensive spending review.
Despite the extra funding, the council still faces financial challenges from the ongoing cost-of-living crisis and rising housing pressures. With more people living longer, the demand for social care in Southwark is also increasing.
To help meet these pressures, council tax will rise by 4.99% this year, in line with other London councils but even with this increase, Southwark’s council tax remains the eighth lowest in London. To support residents in the best possible way, we will continue to offer council tax discounts of up to 85% for those on the lowest incomes and up to 100% for young people leaving care and families who foster children in our borough.
Cllr Stephanie Cryan, Cabinet Member for Equalities, Democracy and Finance, said: “At a time when councils across the country are facing serious financial challenges, I am proud that Southwark has achieved a balanced budget for 2025-26 that prioritises and protects and invests in local services and in our communities.
“I’m also happy that we continue to have one of the lowest council tax rates in London that enables to deliver the services our residents deserve, and with council tax discounts for people on the lowest incomes.
“We have worked hard to protect frontline services, support our most vulnerable residents, and invest in the things our communities have told us matter most. This includes tackling homelessness, keeping our streets clean and safe, and ensuring our children’s centres remain a vital resource for families.”
The budget forms part of Southwark’s Medium Term Financial Strategy (MTFS), which sets out the council’s financial planning for the coming years.
For more information, please see details of the Budget as agreed by Southwark Council.