Nick Stanton, Riverside ward councillor and leader of Southwark Council, has been awarded the OBE in the New Year honours list.
Barrister Nick Stanton was first elected to Southwark Council as a Liberal Democrat councillor in Riverside ward in 1998.
Since 2002 he has served as council leader, initially in a minority Lib Dem administration and since 2006 in an alliance with the Conservatives.
Earlier this month the Audit Commission released a report which concluded that the authority is "performing well".
"Nick and his colleagues have transformed Southwark in the six and a half years since he became the leader," says Simon Hughes MP. "In spite of the restraints on public expenditure I have no doubt that this improvement and transformation will continue."
Cllr Stanton's honour is for "services to local government".
There is a CBE for Prof Anne Marie Rafferty, dean of the Florence Nightingale School of Nursing & Midwifery at St Thomas' Hospital. Prof Rafferty is a trustee of the Florence Nightingale Museum.
Also honoured in this year's list is Sophi Tranchell, managing director of the Gainsford Street-based fair trade chocolate firm Divine, who receives the MBE "for services to the food industry". The company recently celebrated its tenth anniversary with an exhibition at Oxo Tower Wharf.
Local resident Maxine Benson, co-founder of Waterloo-based everywoman which provides training, resources and support services for women in business, receives the MBE "for services to women's enterprise".
Carol Leonard, group scout leader of the 75th Lambeth Scout Group based at Lambeth Mission & St Mary's in Lambeth Road, receives the MBE "for services to education".
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