London Councils has responded to new research from the Institute for Fiscal Studies (IFS) which has shown London local government to have the largest funding gap (17%) relative to need of any region in England.
London Councils' Executive Member for Communities, Cllr Claire Holland, said: "Over the last decade outer London in particular has become more deprived, reflecting demographic and economic changes. Since funding was last updated, London's total population has grown by almost 800,000 - broadly equivalent to a city the size of Leeds."
"Local government funding has not changed to reflect these fast-rising pressures and growing levels of need.
"Local government funding reform must take place alongside vital investment across the entire sector to put council finances back on a sustainable path for the long term."