On the day Andy Burnham took office as Prime Minister, Lambeth Council leader Martin Abrams wrote to him to welcome the new government and press for urgent changes to funding and housing rules that the council says have left local services stretched to breaking point.
What Lambeth is asking for
In a letter sent on Monday, Abrams acknowledged areas of shared experience between Lambeth and Greater Manchester, pointing to the damage that years of spending restraint have done to councils' ability to deliver for residents. He warned that funding arrangements introduced after the last Fair Funding Review have hit Lambeth hard; the council estimates this shortfall at £47 million over three years, and says it was one of four authorities excluded from transitional protections.
“You know, like us, that the consequences of those cuts are felt most sharply, whether in Brixton or Bolton, by the poorest and most vulnerable,”
The letter sets out five specific demands the council wants to see from central government. They are intended to ease immediate pressures and to enable longer-term investment in social housing and local services.
- Remove the cap on transitional funding introduced under the Fair Funding changes.
- End Right to Buy and provide low-interest loans to councils for building council homes.
- Allow local authorities to retain receipts from the Mansion Tax and Overnight Levy.
- Recognise and reimburse the additional burdens councils face from extreme weather events.
- Reform the children’s services market to stop private companies profiting from vulnerable children.
Local context and consequences
Abrams made clear that the funding gap has had concrete consequences. Lambeth has needed Exceptional Financial Support and has even considered selling council assets to balance the books — a move he warned would lead to the permanent loss of long-term community benefits from public buildings.
The pressure on housing is acute: the council notes there are more than 4,500 households from Lambeth currently in temporary accommodation. That figure forms part of Abrams’s broader plea for what he described as a “social housing revolution” to tackle the housing emergency facing the borough.
| Issue | Council claim |
|---|---|
| Fair Funding shortfall | £47m over three years |
| Households in temporary accommodation | Over 4,500 |
| Other councils said to be affected | Southwark, Islington, South Tyneside |
Next steps
Abrams closed the letter by offering to work with the new administration, saying Lambeth is prepared to collaborate on tackling inequality and building council homes — but cautioned that the borough needs the practical powers and resources to make that happen. The council has also published an accompanying video summary of the letter to explain its position to residents.
The new Prime Minister’s response is expected to be closely watched by councils nationally, especially those that say they were penalised by the last funding review. For residents in Brixton, Clapham and across Lambeth, the outcome will affect local council services, housing supply and the future of community buildings.
