The vestry served as one of the lower tier authorities within the area of the Metropolitan Board of Works, which was established to provide services across the metropolis of London.

The split of powers and functions meant that the Greater London Council was responsible for "wide area" services such as fire, ambulance, flood prevention, and refuse disposal; with the boroughs (including Lambeth) responsible for "personal" services such as social care, libraries, cemeteries and refuse collection.

[15] On 9 September 1985 the district auditor for Lambeth gave notice that the delay in fixing the rates was wilful misconduct and so the councillors were required to repay the £126,947 costs as a surcharge.

[18] The High Court delivered its judgment on 6 March 1986, finding heavily against the councils; Lord Justice Glidewell described the stance of the councillors as "mere political posturing"; Mr Justice Caulfield described the evidence of wilful misconduct as "crushing" and the councillors' stance as having "reached a pinnacle of political perversity".

[12][13] The following year, Twelves and 12 other councillors were suspended from the local Labour Party by regional officials for advocating non-payment of the poll tax and other ideas.

[27] The Inquiry found that a "culture of cover-up" had led to the abuse continuing over decades; the Council made an "unreserved apology to the victims".

[32] Following further investigations, the Housing Ombudsman accepted that Lambeth had made improvements, but "too many residents" still get "an unacceptable service" from the council.

[33][34][35] In 2024, Lambeth Council was criticised for trying to force residents into non-disclosure agreements when settling complaints from leaseholders overcharged for repairs, building works and service charges.

[36] In June 2024 the CEO of Lambeth Council, Bayo Dosunmu, was charged by the police with possession of a Class A drug, failing to stop after a road accident, driving above the proscribed alcohol limit and using a motor vehicle in a public place without third party insurance.

It is a local education authority and is also responsible for council housing, social services, libraries, waste collection and disposal, traffic, and most roads and environmental health.

[56] The council's main offices are at Lambeth Civic Centre at 6 Brixton Hill, a short distance south of the Town Hall.