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

PRINCIPAL TRANSPORT PLANNING OFFICER

Hull City Council
£43693 - £46731
We have an exciting opportunity for an experienced professional to join our team in Hull as a Principal Transport Planning Officer. Kingston upon Hull, East Riding of Yorkshire
Recuriter: Hull City Council

HIGHWAYS AND TRAFFIC ENGINEER - 4 POSTS

Hull City Council
£43693 - £46731
We have several exciting opportunities for suitably qualified Highways Civil Engineers and Traffic Engineers Wilson Centre, 1st floor, Hull HU1 2AG
Recuriter: Hull City Council

Strategic Director, Finance and Resources (S.151 Officer)

Blackburn with Darwen Borough Council
£110,799 - £120,706
Blackburn with Darwen is a distinctive, welcoming and vibrant borough with a strong identity and a genuine buzz about the place. Blackburn, Lancashire
Recuriter: Blackburn with Darwen Borough Council

Residential Worker, Edge of Care Service

Durham County Council
Grade 7 £29,093 - £32,654 PAY AWARD PENDING
Join a Groundbreaking Team Supporting Families in Seaham Salary
Recuriter: Durham County Council

Bikeability Cycling Instructor

Durham County Council
Grade 4 £24,790 to £25,992 pro rata (Pay Award Pending)
The Road Safety Team are keen to recruit additional Casual Bikability Instructors to join our team of instructors delivering Bikeability cycle trainin Durham
Recuriter: Durham County Council
Linkedin Banner