Ellie Ames 12 September 2024

Several London councils ‘edging closer towards effective bankruptcy’

Several London councils ‘edging closer towards effective bankruptcy’ image
Image: Brookgardener / Shutterstock.com

Boroughs in the capital are set to overspend by more than £600m this year as housing and homelessness pressures ‘wreak havoc’ on their finances, according to London Councils.

The cross-party group said the projected overspend included £250m on homelessness alone.

It warned that pressure on Housing Revenue Accounts (HRAs) was so acute that boroughs would need to make £170m of cuts to supervision, management, maintenance and repairs over the next four years.

The organisation said three boroughs’ accounts were so depleted they may run out of HRA reserves, a situation thought to be unprecedented.

London Councils warned the shortfall was set to climb to £700m next year, and said several boroughs were ‘edging closer towards effective bankruptcy’.

Its submission to the Treasury ahead of the Budget asks for a 7% uplift to core spending power next year, a doubling of the Homelessness Prevention Grant, and a new funding settlement for the social housing sector.

London Councils chair Claire Holland said: ‘The unavoidable reality is that spiralling costs and years of underfunding threaten to break boroughs’ budgets.

‘The upcoming Budget is a crucial chance for the Government to restore much-needed stability to council finances and the local services we provide.’

SIGN UP
For your free daily news bulletin
Highways jobs

Casual Support Worker

Oxfordshire County Council
£25992 - £28163
About Us Abingdon Community Support Service's primary purpose is to support adults to engage with a stimulating programme of meaningful individual and rewarding group activities. The Social and Community Services vision is to support and promote strong c Abingdon Community Support Service
Recuriter: Oxfordshire County Council

Quality and Review Support Assistant

Durham County Council
Grade 4 £25,583 - £26,824 Pro-rata
WHAT IS INVOLVED?   You will provide administrative, clerical and typing services to the Quality & Review Service, specifically in support of the Inde Spennymoor
Recuriter: Durham County Council

Duty Manager

Durham County Council
Grade 6 £28,142 - £31,022 per annum
We have an opportunity for a Duty Manager at Meadowfield Leisure Centre.  WHAT IS INVOLVED? You will be responsible for the day-to-day operation of t Durham
Recuriter: Durham County Council

Support Worker

Durham County Council
Grade 4 £25,583 - £26,824 Pro-rata
WHAT IS INVOLVED?   You should be an enthusiastic team player who takes pride in providing excellent customer service.  You will have good communicati Spennymoor
Recuriter: Durham County Council

Support Worker

Durham County Council
Grade 4 £25,583 - £26,824 Pro-rata
We have an exciting opportunity for a permanent Support Officer to join our dedicated team within Business Services (part time 22 hours).   WHAT IS IN Durham
Recuriter: Durham County Council
Linkedin Banner