William Eichler 01 November 2022

London councils face £700m funding gap

London councils face £700m funding gap image
Image: Yolanta/Shutterstock.com.

Local authorities in London will be forced to find £700m of savings next year unless the Government boosts funding for local services in the capital, cross-party group says.

London Councils has warned that the energy crisis, soaring inflation, and rising demand for services has put ‘huge additional financial pressures’ on boroughs’ budgets.

The local government body calculates that under current funding plans London boroughs face a gap of up to £400m this year and £700m in 2023-24. In total, the forecast funding gap for London local government is £2.4bn over the next four years.

Underfunding of local services in the capital is a longstanding issue, according to London Councils. Overall resources available to boroughs are 22% lower in real terms compared to 2010, even though London’s population has grown by almost 800,000 (a 10% increase).

Cllr Georgia Gould, chair of London Councils, said that the funding outlook for the capital’s boroughs is ‘beyond bleak’ and warned that cuts are inevitable.

‘Boroughs will do everything we can to protect our communities but a £700m funding gap next year will force us into the toughest of tough decisions unless the government offers new support,’ she said.

‘Just as ministers worked effectively with councils at the height of the Covid-19 pandemic, we need a similar spirit of partnership in the face of the cost-of-living emergency. Properly funding local services is essential for supporting struggling households and building economic growth in our communities.

‘We’re urging the government to listen to councils’ concerns and take swift action to avoid a bad situation becoming even worse.’

SIGN UP
For your free daily news bulletin
Highways jobs

Head of Housing

North West Leicestershire District Council
£64,241 to £74,525 (plus car allowance)
We are currently seeking a new Head of Housing to lead a number of key service areas Leicestershire
Recuriter: North West Leicestershire District Council

Director of People

Bolton Cares
£80,287 – subject to skills and experience
Bolton Cares is on an exciting journey of transformation and growth and we’re looking for a dynamic, people-focused leader to help shape our future. Bolton, Greater Manchester
Recuriter: Bolton Cares

Director of Finance (Strategy) – deputy S151

Nottingham City Council
up to £125k
Nottingham is a bold, vibrant, and exciting Core City at the heart of the UK, alive with potential and ambition. Nottingham, Nottinghamshire
Recuriter: Nottingham City Council

Adult Learning Tutor Maths WMF2142e

Westmorland and Furness Council
£35,235.00 - £36,124.00 (pro rata)
We are looking for an inspirational tutor to deliver maths courses to our learners across Carlisle. Carlisle, Cumbria
Recuriter: Westmorland and Furness Council

Adult Learning Tutor ESOL English WMF2144e

Westmorland and Furness Council
£35,235 - £36,124 (pro rata)
We are looking for an enthusiastic and self-motivated individual with experience of teaching ESOL. Whitehaven, Cumbria
Recuriter: Westmorland and Furness Council
Linkedin Banner