With the Spring Budget set to be announced tomorrow (6th March), London Councils is urging the government to increase its support for local authorities.
Currently, councils in London alone face a £400 million funding shortfall for the coming year, with policy priorities from London Councils enforcing the message that the government needs to extend the Household Support Fund. The HSF was worth £137 million to boroughs in London in the last year and gave councils the ability to support residents who aren’t able to make ends meet.
The fund has been used by councils in London to pay for 472,000 meals for children during the school holidays, as well as supporting 218,000 families in the capital with emergency food support.
Deputy Chair of London Councils, Cllr Claire Holland, commented:
“We’re looking to the Budget to boost support and stability for hard-pressed Londoners and the local services they rely on.
“Extending the Household Support Fund is a top priority. The life-changing impact of the fund is clear – but if the government brings this to an end there is no alternative funding stream.
“Boroughs are grappling with immense financial pressures. On current government funding plans, London boroughs face a massive £400m shortfall in the coming year. The Chancellor should go further in ensuring councils have the resources they need to sustain local services and deliver the best possible results for London’s communities.”
Alongside an extension to the Household Support Fund, there is further pressure on the government to help provide more stability for councils as they deal with homelessness challenges and the costs of temporary accommodation. In relation to this, more than 170 council leaders came together to request that the Chancellor provides further support for authorities.
Touching on the support required for councils, Chair of the Local Government Association’s Resources Board Cllr Pete Marland said:
“The Household Support Fund has provided a vital lifeline for our most vulnerable residents during the rising cost of living, as our cross-party letter highlights.
“Many at-risk households continue to face considerable challenges in meeting essential living costs, with demand for support greater than when the fund was first introduced.
“Ultimately, councils want to shift from providing crisis support to investing in preventative services which improve people’s financial resilience and life chances, alongside a sufficiently-resourced national safety net.
“However, without an urgent extension of this funding for at least a year, there is a risk of more households falling into financial crisis, homelessness and poverty.
“We are hopeful that government will work with councils on this issue.”
As Chancellor Jeremy Hunt announces his Spring Budget, you can follow the most important stories with Public Sector Executive.
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