Lambeth Council in South London seeks government aid to address a £1 billion housing repair shortfall
South London: Lambeth Council is in a bit of a pickle. They’ve asked the government for a hefty £40 million to help balance their budget. The Ministry of Housing hasn’t given them a response yet, which is a bit concerning.
Without this cash, the council says they can’t set a balanced budget for their Housing Revenue Account starting in April. This account is crucial because it tracks the costs and income for running their housing stock. It’s supposed to stay in the black, and right now, it’s looking pretty grim.
A report going to the council’s Cabinet next week highlights just how critical this funding is. They’re hoping to use a financial trick called a ‘capitalisation direction’ to help manage their costs better. It’s a bit of a workaround, but they’re in a tight spot.
Lambeth is staring down a £1 billion hole in their housing account over the next 30 years. The report points fingers at past government policies that have really hurt their finances, especially the rent cuts from 2016 and the cap on rent increases this year.
In December, Cllr Danny Adilypour, the Deputy Leader, didn’t mince words about the situation. He called the financial outlook for the housing account ‘stark’. It’s not just about numbers; it’s about people needing homes.
The report also mentions that new safety regulations for buildings are costing them a fortune, especially since Lambeth has a lot of high-rise blocks. They’re looking at a whopping £76 million bill just for safety upgrades over the next decade.
Next week, they’re also planning to raise council rents by 2.7%. This means the average rent will go up by about £3.60 a week. They’re hoping this will help bring in an extra £4.2 million for the housing account.
Lambeth is a major player in London’s housing scene, with over 23,600 homes. But with all these financial hurdles, it’s tough to keep everything running smoothly. Cllr Adilypour has said they’ve done everything they can to cut costs and generate income, but it’s still not enough.
It’s a tough situation, and they’re really hoping for some help from the government to keep things afloat.
