Lewisham Council bosses will look to cut a further £12 million from its services for 2020/21, after the mayor and cabinet approved a £9 million cut for the same year.

This comes as the council forecasts another cut in government funding, with a further £12.5 million expected to be lost from its main funding between 2019/20 and 2023/24, according to a council report.

This also comes as Lewisham sees more pressure on its services, with the number of children in care increasing by five per cent in 2018.

Government funding, council tax and business rates are not enough to cover current council spending and new budget pressures, the report explains.

Lewisham announced it would have to cut cut £30m from its services by 2021, with a £50 million funding gap expected over the four years ending April 2024, according to the report.

“The funding gap is a combination of the council’s best estimate of the future budget needed to cover rising cost pressures and demands for services alongside a reduced amount of income,” the report explains.

“Action is required now to enable the council to meet the legal requirement to balance the budget both next year and in future years.”

Bosses will now look at what more cuts can be made and the risks of making those cuts, before they go through the council’s scrutiny committees and before mayor and cabinet for sign-off.

The government has been pushing councils to rely less on its grants and become more self-financing, according to the report.

This will see councils rely more on income from council tax, local business rates, fees and charges, and trading income.

The Chancellor announced that a fair funding review would be revealed later in the autumn and would cover the period 2020/21 to 2022/23, but Brexit uncertainty could cut this to just 2020/21, the report explains.