London's Trafalgar Square at night

Boroughs seek renewed support ahead of Budget

With today bringing Chancellor Rachel Reeves’ first Budget, London Councils outlined how fixing the funding crisis facing London Boroughs must be a priority.

As councils face a £700 million funding shortfall next year, heightened by the ever-growing homelessness crisis in the capital, London Councils has urged the government to use today’s Budget to implement measures that will stabilise funding for local government. This will not only ensure that they can continue to deliver the services that communities rely on but will also be an ‘essential step on the path to achieving national missions.’

Some of the measures that the organisation is hoping to see from the government include:

  • A 7% real-terms boost to core spending power for next year
  • A doubling of the Homelessness Prevention Grant and removal of the cap on temporary accommodation subsidy rates
  • A commitment to annual updates to Local Housing Allowance rates
London budget GRAPHIC

Chair of London Councils, Cllr Claire Holland, said:

“Boroughs find themselves in a dire financial situation. Fourteen years of structural underfunding, combined with fast-rising demand for services and inflated costs, have left borough finances in a state of crisis.

“Housing and homelessness pressures in the capital are astronomical. If things carry on as they are, boroughs will be tipped over the edge into effective bankruptcy, requiring costly interventions from central government to balance the books.

“Stabilising local government finances should be a clear Budget priority. Boroughs are critical to delivering new homes and driving economic growth, working in partnership with the government. Putting councils on a stable financial footing is an essential step for the government on the path to achieving its national missions.”

Recent research from London Councils found that the city is now facing record numbers of people living in temporary accommodation, with almost half (90,000) of the 183,000 people being children. This brings estimates that there is at least one homeless child in every classroom in the nation’s capital.

Spending on temporary accommodation within London boroughs has also now reached £4 million every day, with this representing an increase of 68% on last year.

 

Image credit: iStock

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