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

Development Team Improvement Manager

West Northamptonshire Council
WNC Band 11
You’ll observe and analyse the development team’s workflows, identifying areas for improvement. By collaborating with team members, you’ll provide actionable feedback to streamline processes, enhance collaboration, and boost overall efficiency. Yo Northampton
Recuriter: West Northamptonshire Council

Training, Culture and Engagement Officer

Royal Borough of Greenwich
£35577 - £36567 per annum
Training, Culture and Engagement OfficerWe're looking for a Training, Culture and Engagement officer to join our team to help us embed our digital str England, London, Woolwich
Recuriter: Royal Borough of Greenwich

Support Officer

Royal Borough of Greenwich
£34416 - £35448 per annum + Term time only
Support Officer - Royal Greenwich Music Service21 hours per week, Term time onlySalary - Scale 6 £34,416 - £35,448 ( Pro rata ) Join the Royal Greenw England, London, Woolwich
Recuriter: Royal Borough of Greenwich

Senior Parking Officer

Royal Borough of Greenwich
£38934 - £40755 per annum + n/a
Senior Parking Officer (Business Team) About Us Our Greenwich Plan sets out our vision for the next 4 years focusing on the changes we collectively wa England, London, Woolwich
Recuriter: Royal Borough of Greenwich

Parking Design Engineer

Royal Borough of Greenwich
£34416 - £44331 per annum
Parking Design Engineer (Career Graded SC6-PO2) About Us Our Greenwich Plan sets out our vision for the next 4 years focusing on the changes we colle England, London, Woolwich
Recuriter: Royal Borough of Greenwich
Linkedin Banner

Partner Content

Circular highways is a necessity not an aspiration – and it’s within our grasp

Shell is helping power the journey towards a circular paving industry with Shell Bitumen LT R, a new product for roads that uses plastics destined for landfill as part of the additives to make the bitumen.

Support from Effective Energy Group for Local Authorities to Deliver £430m Sustainable Warmth Funded Energy Efficiency Projects

Effective Energy Group is now offering its support to the 40 Local Authorities who have received a share of the £430m to deliver their projects on the ground by surveying properties and installing measures.

Pay.UK – the next step in Bacs’ evolution

Dougie Belmore explains how one of the main interfaces between you and Bacs is about to change.