London borough to commission independent financial review

The review will assess the council’s current spending and budget-setting processes, comparing them against national best practice standards for local government finance, the London borough said.

The cabinet backed plans for the review earlier this month, after considering a report that said the council continues to face significant pressure from temporary accommodation and its adults and children's social services.

Lambeth has received £116m in Exception Financial Support (EFS) in light of its delicate financial position.

The report said the EFS has strengthened its overall financial position, including reserves, increasing its resilience and ability to manage pressures in the coming years.

The demand-led areas, such as temporary accommodation and adult and children's social care, have continued to see high levels of spend.

"We are also reporting significant overspend this year in some areas of Growth and Environment, from a combination of underachievement of income targets and one-off costs," it added.

The council's draft outturn forecasts a £15.9m overspend on the General Fund.

Lambeth said the independent review will help to comprehensively set out what has led to the council’s current financial situation and make recommendations to address the issues.

A spokesperson for Lambeth Council said: "The findings will be published later this year and made available to every resident in Lambeth. The review will help to comprehensively set out what has led to the council’s current financial situation, and make recommendations to address that.

"Lambeth faces a stark financial challenge, and the review will examine the situation as well as how to address it going forward."

Adam Carey