The capital’s boroughs face a £400m funding gap this year, set to rise to £500m in 2024-25, new analysis from London Councils reveals.
Boroughs will have to grapple with a projected £2bn shortfall over the next four years, the cross-party group has said.
It said social care pressures and the capital’s homelessness crisis are driving financial shortfalls.
With an estimated 170,000 homeless Londoners, boroughs expect to overspend by £90m on temporary accommodation this year.
Acting chair of London Councils, Claire Holland, said: ‘Borough finances are on a knife edge – with grim implications for the future of local services in the capital.’
The organisation said boroughs’ resources are almost a fifth (18%) lower than in 2010, despite there now being almost 800,000 more people living in the capital.
London Councils has called on the Government to increase overall funding to councils by at least 9% and uplift the Local Housing Allowance and Homelessness Prevention Grant in the Autumn Statement.
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