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Your weekly London local government update

08 Jan 25

Borough finances remain "stuck in survival mode" after settlement

London Councils has warned that borough finances will be “stuck in survival mode”, following the provisional Local Government Finance Settlement for 2025-26, unveiled shortly before Christmas.

While welcoming the additional investment in frontline services and steps being taken to reform the broken local government funding system, London Councils anticipates that boroughs will still be left with a £500m funding shortfall amid immense service pressures and spiralling costs.

Chair of London Councils ( [link removed] ), Cllr Claire Holland, ( [link removed] )said: “Borough finances look set to be stuck in survival mode. After fourteen years of structural underfunding, spiralling costs, and fast-rising demand for services from residents in need, the strain on borough budgets is enormous.

"We welcome the additional support being provided by the government and the increase to homelessness funding is a step in the right direction. However, we are concerned about resources for temporary accommodation being squeezed, and this is a key funding pressure in the capital. Overall, boroughs are still grappling with significant shortfalls, making it harder to protect local services.

“The government has rightly committed to reforming the broken council funding system. We will continue to work with ministers on restoring stability to borough finances and ensuring next year’s Spending Review brings the long-term investment we need. This is crucial so that boroughs can keep delivering local services for Londoners, putting prevention at the heart of our work, and driving inclusive growth across the capital.”

Adult Social Care solutions

Adult Social care professionals and stakeholder groups are invited to attend an in-person event on 29 January, hosted by the London Office of Technology and Innovation (LOTI) that will discover and share prototype solutions for adult social care, developed with London boroughs and their partners, through the LOTI Sandbox in Adult Social Care.

The LOTI Sandbox is a collaborative approach designed to test experimental solutions to London’s most pressing challenges. You can find more information and register to attend here. ( [link removed] )

By-election results

A by-election took place in the Royal Borough of Greenwich’s West Thamesmead ward on 19 December. The by-election was won by Jahdia Spencer (Lab). You can read the full result here ( [link removed] ).

Three Aldermanic elections took place in the City of London on 19 December. The election in the Bassishaw ward was won by Timothy Hailes (Ind); the election in the Billingsgate ward was won by Bronek Masojada (Ind); the election in the Broad Street ward was won by Michael Mainelli (Ind). You can read the full results here. ( [link removed] )

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In the news this week...

How section 106 crisis is 
threatening affordable housing 
delivery
LGC ( [link removed] )

Someone falls into homelessness in London every seven and a half minutes
The Big Issue ( [link removed] )

London's Housing Emergency
On London ( [link removed] )

Government launches adult 
social care commission
LGC ( [link removed] )

Social care ‘likely to deteriorate’ during wait for review
LocalGov ( [link removed] )

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What topics are you interested in? Click here to let us know ( [link removed] )

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Directory

You can find contact details for every councillor in London in our London Government Directory here ( [link removed] )

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London Councils is the collective of local government in London, the 32 boroughs and the City of London.
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