Southwark coalition faces £102m gap and cancelled meetings after Labour loss
Green and Lib Dem leaders defend record as Labour accuses them of chaos and U-turns
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Only one named source (council leader) and no direct document citation.
Higher is stronger
Quotes from affected residents and opposition included, but no right of reply sought.
Higher is stronger
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Lower is better
Southwark Council’s first coalition administration in two decades has begun work amid accusations of chaos and a £102m budget shortfall left by the previous Labour leadership. The Green Party and Liberal Democrats took control in May 2026 after Labour lost its majority, despite remaining the largest group on the council.
Council leader James McAsh, a former Labour councillor, told the BBC the coalition is “fixing Labour’s mess” but faces immediate financial pressures. The £102m funding gap was confirmed by the council in a statement to the BBC. McAsh said the new administration is “entirely accountable to the people of Southwark” and will prioritise affordable housing.
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Meetings cancelled, services restored
The coalition has faced criticism for cancelling or postponing council meetings since taking office. Labour councillor Evelyn Akoto, deputy leader of the opposition, said the past three months have been “chaotic”. She cited two proposed service cuts that were later reversed: a free mental health service for young people called The Nest, and a dementia support service.
McAsh said the meetings were originally scheduled by Labour under the assumption they would retain control. On the service cuts, he said Labour had allowed contracts to lapse just days before the coalition took over. The council later restored funding, which McAsh described as “fixing Labour’s mess” rather than a U-turn.
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They needed to mean what they say and say what they mean, and stick to it. If they're going to build places like this then they need to do it sooner, rather than later. Don't drag it out.
Fran Goggins, Appleby Blue Almshouse resident
Housing pledge and political timeline
The coalition has highlighted the Appleby Blue Almshouse in Bermondsey as an example of its housing ambitions. The Stirling Prize-winning development provides subsidised housing for older residents and was built on land provided by Southwark Council under Labour. The charity United St Saviour’s runs the scheme, which opened in 2025.
Resident Fran Goggins said the almshouse had freed up her former three-bedroom council home for another family. She urged the coalition to act quickly on its promises. About 23,000 households are currently on Southwark’s social housing waiting list, according to council figures.
The coalition holds 34 of the council’s 63 seats, with Labour on 29. The next local elections are due on 2 May 2030. Tony Travers, a professor at the London School of Economics, told the BBC that coalitions can work but require clear priorities. He cited past examples in Camden and Lambeth where Conservative-Lib Dem alliances lasted several years.
What happens next
The coalition has not yet published detailed plans for addressing the £102m funding gap or expanding affordable housing. McAsh said the administration will set out its proposals in the coming months. The council’s next full meeting is scheduled for 15 September 2026, when the coalition is expected to present its first budget proposals.
Residents can submit questions or objections to the council through its website or by attending public meetings. The opposition Labour group has pledged to scrutinise the coalition’s decisions and challenge any further service cuts.
Questions this report answers
+How much money is Southwark Council’s coalition trying to save?
The coalition says it inherited a £102m funding gap from the previous Labour administration. Council leader James McAsh told the BBC this is one of the main challenges facing the new administration.
+Why have council meetings been cancelled in Southwark?
The coalition has cancelled or postponed several meetings since taking office in May 2026. Leader James McAsh said the meetings were originally scheduled by Labour under the assumption they would remain in control.
+What happens next in Southwark’s political timeline?
The next local elections in Southwark are due on 2 May 2030. The coalition has nearly four years to deliver on its pledges, including addressing the £102m funding gap and expanding affordable housing.
+Who is responsible for the Appleby Blue Almshouse?
The Appleby Blue Almshouse in Bermondsey is run by the charity United St Saviour’s. Southwark Council provided the land for the development, which was built using developer contributions while Labour was in power.
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