William Eichler 11 February 2025

Spending Review chance to end ‘permacrisis’

Spending Review chance to end ‘permacrisis’ image
Image: Martin Suker / Shutterstock.com.

The Government’s forthcoming Spending Review is a chance to end the ‘permacrisis’ that has left a growing number of local authorities on the brink of bankruptcy, London Councils says.

In the cross-party group’s submission to the Spending Review, it called for council funding to be restored to 2010 levels by 2028-29. This would require a real-term increase of 4% every year.

London Councils urged the Government to invest in local services after what they describe as a ‘prolonged period of underfunding and instability’.

The capital’s boroughs receive around 28% less funding per Londoner compared to 2010 and face a £500m funding shortfall in 2025-26, according to the group’s analysis.

Cllr Claire Holland, chair of London Councils, commented: ‘After years of permacrisis in council finances, the Spending Review is a vital opportunity to turn things around and deliver a more sustainable financial future.’

The Local Government Association has also sent its submission to the Treasury ahead of the Spending Review.

It urges the Government to increase funding and says councils are central to public sector reform and are open to digital innovation and technology-led reform.

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