William Eichler 09 May 2018

London boroughs ‘hard hit’ by austerity, think tank says

London’s boroughs have been ‘hard hit’ by Government cuts, a new analysis shows, with council spending in the capital falling by nearly a fifth in seven years.

New research by the think tank Centre for London has found that council spending in the capital saw a 19% fall in budgeted expenditure (per head) between 2010/11 and 2017/18.

This does not include education, public health and policing.

Inner London authorities have been hit the hardest by the decrease, the think tank said. The largest falls occurred in Newham (-33%), followed by Westminster and Camden (both -29%).

Labour councils, on average, still spend more per head compared to Conservative and Liberal Democrat-run councils or those with no overall control.

However, Labour councils have seen larger proportional drops in service budgets which have reduced this gap. The average per capita spending between boroughs run by the two main parties has gone from £273 in 2010, to £130 in 2015, and £92 in 2017. 

Resources have primarily been focused on statutory services. These have seen the smallest falls in expenditure per person, dropping only 2.8% and 10.6% respectively.

In 2017/18, according to Centre for London’s findings, which were published in The London Intelligence, adult and child social care accounted for 62% of total spending, compared to 54% just seven years earlier. 

Planning and development budgets have been hit particularly hard. They have been cut by 55%. Cultural activities, such as recreation and sport, have been reduced by 44% and highways and transport by 38%.

‘Newly elected London councillors are this week arriving at town halls that have been on the front line of austerity,’ said Richard Brown, research director at Centre for London.

‘London boroughs, like other metropolitan authorities, have been hard hit by spending cuts, with the result that delivering on manifesto promises — especially on increasing the supply of affordable housing — may be challenging.   

‘Until now, councils have shown ingenuity in finding efficiencies and protecting statutory services, but they are running out of road. Continuing austerity is likely to force some harsh choices in the years to come.

‘Local authorities should put party politics aside, and collectively lobby for a new funding settlement, with fiscal devolution and local taxation reform, to put  London services on a sustainable footing.’

SIGN UP
For your free daily news bulletin
Highways jobs

Director of Public Health

Royal Borough of Greenwich
Up to £131,210
The Public Health department is at the heart of the council’s business. Greenwich, London (Greater)
Recuriter: Royal Borough of Greenwich

Head of Regeneration and Growth

Plymouth City Council
£68,387 - £74,411 (MFS and relocation available, pay award pending)
This is a unique opportunity to lead our award-winning development team and directly deliver hundreds of millions of pounds of projects. Plymouth, Devon
Recuriter: Plymouth City Council

Director of Adult Social Care

Wiltshire Council
£119,390 - £127,137
Join us as the Director of Adult Social Care and make a real difference to people’s lives. Wiltshire
Recuriter: Wiltshire Council

Assistant Director Planning, Performance & Engagement

East Sussex County Council
up to £97,700
With strong local communities, unspoilt countryside and vibrant coastal towns, East Sussex offers an exceptional quality of life to many. East Sussex
Recuriter: East Sussex County Council

Director of Finance & Commerce

Lancashire County Council
Up to £114,339
You will play a critical role in driving the organisation through complex change and innovation. Lancashire
Recuriter: Lancashire County Council
Linkedin Banner