London Councils has warned that boroughs will continue to
face unsustainable budget pressures next year, despite government
plans to increase funding, as confirmed in publication of the provisional Local Government Settlement for 2024/25 on Monday.
London Councils’ analysis indicates that, while the
government’s announcement of a 6.4% funding boost for London local authorities
will bring some relief, it will not be enough to address all the skyrocketing
costs and financial distress boroughs are experiencing, with an anticipated
continuing funding shortfall of at least £500m next year.
Cllr Claire Holland, Acting Chair of London Councils, said:
“We are deeply concerned 2024 looks set to be another year of massive budget
pressures and a continuing squeeze on Londoners’ local services.
“The measures announced by the government fall short of what
we need. While the funding deal will bring some relief, it won’t be enough to
plug the budget gaps we face and restore stability to town hall finances.
“Much of this uplift also relies on council tax rises, which
will be extremely difficult for Londoners struggling with the cost of living.
“The entire system of local government funding needs urgent
reform. For too long, boroughs in the capital have been left with inadequate
resources despite London’s population and demand for services growing fast.”
