The government has granted Lambeth LBC exceptional financial support, amounting to £50 million, for the fiscal years 2023-24 and 2024-25. This support is in the form of allowing the borough to utilize capital receipts from asset sales or borrowing to cover day-to-day expenses up to the specified amount.
Lambeth LBC, becoming the 20th local authority to receive such support, will now have the flexibility to allocate funds from capital receipts or borrowings towards essential services and operations. This financial assistance will help alleviate the financial burden faced by the borough.
The Department for Levelling Up, Housing & Communities officially approved Lambeth’s request for a capitalisation direction of up to £30 million for the fiscal year 2023-24. However, any borrowing from the Public Works Loan Board will now incur an additional percentage point premium on the interest rate, except when utilized for the housing revenue account.
To secure this agreement, Lambeth is required to develop and share an action plan within the next month. This plan should address the key recommendations put forth by the Chartered Institute of Public Finance & Accountancy (Cipfa), as highlighted in their recent assurance review.
Cipfa’s review, also released today, confirms that Lambeth’s financial plans are being closely monitored, and the borough has taken appropriate measures to minimize the need for government assistance. The government’s support will aid Lambeth in maintaining financial stability and providing crucial services to its residents.