I suspect Lambeth's legal team have decided that it is far better to potentially upset a High Court judge (maybe beg for forgiveness) than face the wrath of the legal teams of event organisers, promoters, service providers who would come after them for a lot of money if the event had to be cancelled. Clearly the original error was on the part of the council so I suspect that would make them liable for any losses/reputation damage incurred due cancellation/disruption.
I suspect it was putting "not bankrupting Lambeth Council" considerations first.
Cancelling those festivals at a week to go could have been financially catastrophic and may have unleashed financial hell on Lambeth.
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