Lambeth Council Seeks £40 Million Bailout from Government for Housing

Lambeth: The council is in a bit of a pickle and has asked the government for a £40 million bailout. They need this cash to keep their housing budget in check.

The Ministry of Housing hasn’t replied yet, but without this support, Lambeth says it can’t balance its housing revenue account starting in April. This account is crucial because it tracks the costs and income of running council housing.

A report going to the council’s Cabinet next week highlights that this financial help is vital. They’re looking for a way to treat some short-term costs as capital investments, which is a bit of an accounting trick.

Lambeth is staring down a £1 billion hole in its housing account over the next 30 years. The report points fingers at past government policies that have hurt their finances, like the rent reduction policy from 2016.

It also mentions that new safety regulations have piled on extra costs without any funding to cover them. This is especially tough for Lambeth, which has a lot of high-rise buildings.

Next week, the council plans to approve a 2.7% rent increase, which will add a bit more money to their housing budget. But they’re also reducing some service charges, which is a small relief for residents.

Lambeth is the second-largest council landlord in London, managing over 23,600 homes. The Deputy Leader of the council, Cllr Danny Adilypour, has described the financial situation as pretty grim.

He’s pointed out that past government decisions have really limited their ability to maintain housing properly. They’re committed to keeping things up to standard, but it’s tough when the funds just aren’t there.

With many of their homes being quite old, they really need to invest in repairs and upgrades. The council is hoping to work closely with the new government to find a way out of this mess.