London boroughs are now spending 14% less per person compared to five years ago, a new report into spending in the capital has revealed.
Running on fumes, published by Centre for London, warns this figure could rise to 28% in real terms following next week’s spending review.
The analysis shows that planning and development expenditure has been hit the hardest by cuts, falling by 60% across London. Highways and transport spending has been maintained due to parking and other charges increasing by £100m over five years.
Richard Brown, research director at Centre for London, said: ‘London’s local authorities have shown resilience and ingenuity in absorbing 44% real terms funding reductions over the past five years with only a modest impact on front-line services. But running down services like planning, environmental services, cultural services to protect services to the most vulnerable cannot be repeated indefinitely.
‘The next round of cuts could be as tough if not tougher. London’s boroughs will need to work together to cope with these, but the capital also needs a fair deal - with the powers and resources to maintain social cohesion and economic prosperity.’
