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

Chief of Staff

Borough Council of King's Lynn and West Norfolk
up to £126,615
We’re transforming services with ambition and community at the heart of our work. Norfolk
Recuriter: Borough Council of King's Lynn and West Norfolk

Director of People

Lancashire County Council
£108,697 - £117,998
As a leader at Lancashire County Council, you’ll join an authority with real scale, courageous ambition and deep pride in place. County hall
Recuriter: Lancashire County Council

Director of Strategy and Transformation

Lancashire County Council
£108,697 - £117,998
As a leader at Lancashire County Council, you’ll join an authority with real scale, courageous ambition and deep pride in place. Preston, Lancashire
Recuriter: Lancashire County Council

Care and Support Assistant -Longlands

West Northamptonshire Council
13.52ph
About the role We are looking for a dedicated Care and Support Worker to join our team at Longlands Care Home in Daventry. In this rewarding role, you will provide compassionate, person-centred care to older people and those living with dementia, includin Daventry
Recuriter: West Northamptonshire Council

Highway Design and Construction Manager

Bolton Council
Grade N, scp50 £62,443 to scp53 £65,663 per annum, plus essential car user allowance
We embrace AI to enhance our operations and to innovate our services. Bolton, Greater Manchester
Recuriter: Bolton Council
Linkedin Banner