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Your weekly London local government update

31 July 24

Spending Review a welcome 
opportunity to bring stability

London Councils has welcomed the Spending Review announced by the Chancellor Rachel Reeves as an opportunity to bring “desperately needed” stability to council finances.

Responding to the Chancellor’s speech, London Councils Chair Cllr Claire Holland ( [link removed] ) said: “We welcome this Spending Review as an opportunity to bring desperately needed stability to town hall budgets and strengthen our role as drivers of local growth.

“Turning the tide on the council finance crisis is crucial for tackling so many of the UK’s most pressing challenges. Whether boosting housebuilding, making faster progress on net zero targets, or arranging social care support that keeps people out of hospital, councils and the services we provide for residents and businesses are essential.

“Insufficient and unpredictable funding has resulted in unsustainable pressures on council finances, as London’s population has grown and demand for services – particularly social care and homelessness support – has skyrocketed.

“Restoring stability to boroughs’ finances will put us in a much stronger position to work in partnership with the government on our shared priorities and help make a positive contribution to its national missions.”

Boroughs are making the case for action to stabilise the local government funding system. Priorities include: Additional funding; to stabilise finances and prevent any more boroughs being forced to issue Section 114 notices. Fairer funding; the distribution of government funding needs to become more reflective of local needs. Funding certainty; greater funding certainty will enable better planning and strategic investment in prevention. Greater financial autonomy; with more financial freedoms and devolved powers, boroughs will be in a stronger position to sustain services and encourage local economic growth.

Borough leadership changes

Cllr Kam Rai was elected as the new Leader of Redbridge Council at the council meeting on 25 July. Cllr Rai, who was has been deputy leader of the borough for six year, replaces Jas Athwal who was elected as MP for  Ilford South at the General Election.

Councillor Richard Olszewski was confirmed as Camden Council's new leader at a full council meeting on Monday 22 July. Councillor Olszewski previously held the role of Cabinet Member for Finance and Cost of Living. He replaces Georgia Gould, who was elected as MP for Queen's Park and Maida Vale at the General Election.

Homelessness report highlights 
‘urgent need for new approach’

A National Audit Office (NAO) report on the effectiveness of government in tackling homelessness demonstrates the “urgent need for a new approach”, according to London Councils.

The NAO’s key findings include that: homelessness is now at the highest level since comparable data collection began in the early 2000s;  A shortage of available housing makes it expensive for local authorities to house people in temporary accommodation, as well as harder for people to find a home; Local authority spending on homelessness services has more than doubled since 2010/11.

London Councils’ Executive Member for Housing &
Regeneration, Cllr Grace Williams ( [link removed] ),  said: “Homelessness represents a national emergency and urgently needs a new approach.

“Every homelessness case is a human tragedy. One in every 23 children in London is currently homeless and living in temporary accommodation. These rates of homelessness have massive impacts on individual wellbeing and opportunities, as well as contributing to unsustainable financial pressures on council budgets.

“But homelessness is not inevitable. As this report clearly demonstrates, government policy could be far more effective in tackling homelessness and getting to grips with its underlying causes. Better co-ordination across government departments, greater housing security, sufficient funding for councils, and more investment in building affordable homes are key to turning the situation around.

“London boroughs are determined to work with the new government and the Mayor of London in tackling this crisis – there is not a moment to waste.”

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In the news this week...

Councils face 'unsustainable' financial squeeze in face of record homelessness
Public Finance ( [link removed] )

McMahon: finance settlement in December
LGC ( [link removed] )

‘Critical’ spending review a chance to bring ‘desperately needed’ stability to council finances
Room 151 ( [link removed] )

New approach’ to homelessness needed from national government, says London Councils
OnLondon ( [link removed] )

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Housing accounts for a third of London's carbon emissions. Improving the energy efficiency of older housing stock (known as 'Retrofitting') will not only allow us to reach our net zero targets, but also save Londoners money on energy bills. This blog by London Councils Retrofit Policy Officer Isabelle Nest-Coleman ( [link removed] ) explores some of the challenges boroughs face and how strategic partnerships could help overcome them.

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London Councils is the collective of local government in London, the 32 boroughs and the City of London.We also run pan-London services like Freedom Pass and Taxicard. 59½ Southwark Street, London SE1 0AL | [email protected] ( [email protected] )

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