Southwark Council’s finances are “not great, but they are under control” despite funding cuts, according to the council leader.

This comes as the council announces a “balanced position” for 2017/18, despite increased pressures on children’s and adult services in the borough.

Speaking at a cabinet meeting, council leader Peter John said the council had managed pressures well in light of reports neighbouring Lewisham Council has a £16.5m overspend for the same period – largely due to increased pressure on children’s services.

“Looking at the pressures we have faced in adults and children’s services we have responded to those pretty well, and we certainly haven’t gotten into that kind of really uncontrolled territory,” he said.

“It is not a great view, as our finances are not great, but they are under control.”

A Southwark Council officer said the council was fortunate to experience an increased yield in council tax – which increased by £35m over the last seven years – and business rates.

“This is a very uplifting revenue report compared to what I have seen over the last few years, where we have seen exactly those pressures across adults and children [services] in particular,” he told the meeting.

“From a cash point of view we are fortunate that austerity cuts have come at same time business rate retain growth has increased.”

There was also a “modest increase in balances for the first time in three or four years,” he said.

The officer warned the cabinet of pressure the council will still face from homelessness, changes to the welfare system and uncertainty over Brexit.

“Overriding the good report, just to reiterate pressures that are still on our table: temporary accommodation, homelessness, outcome of welfare reforms.”

There was also a concern about potential recession in the Brexit period, he said.