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Your weekly London local government update

26 Feb 25

Boroughs need sustainable solution rather than 'misnomer' of Exceptional Financial Support

Following the government’s announcement on Exceptional Financial Support ( [link removed] ) (EFS) for local authorities, London Councils has repeated its call for a sustainable solution to the crisis facing town hall budgets.

The EFS framework has been in place since 2020 and enables councils to take emergency loans from the Public Works Loan Board to help address their immediate financial pressures. The government confirmed seven London boroughs will receive EFS in 2025/26, totalling £418m – a significant jump from the two London boroughs receiving EFS of £71m in 2024/25.

Chair of London Councils, Cllr Claire Holland ( [link removed] ), said:  “Years of structural underfunding combined with fast-rising demand for services and skyrocketing costs have created a perfect storm for borough budgets. These figures show almost a quarter of town halls in London would face financial collapse without emergency borrowing.

"Exceptional Financial Support is a misnomer – it is no longer exceptional and it fails to provide sustainable financial support, instead forcing local authorities to borrow to maintain basic statutory services. Rather than resolve the crisis, EFS is a short-term measure that leaves us with more long-term debts to worry about.

“We desperately need a sustainable solution to the crisis in local government finance, which has been years in the making. We welcome the government’s commitment to working with local authorities to reform a funding system which is fundamentally broken and to bring long-term stability to council finances. London boroughs will be making the case for restoring overall funding to 2010 levels and ensuring it is distributed in a way which meets local need, alongside other crucial interventions to stabilise budgets and avoid further cutbacks to local services.”

In its submission to the government’s Spending Review, London Councils highlights the worsening pressures on borough finances. Our analysis shows boroughs in the capital face a funding gap of at least £500m in the coming year (2025/26). You can read London Councils' submission to the Spending Review in full here. ( [link removed] )

Grant funded group welcomes Royal visitor on 45th anniversary

London Councils' Grants team attended a project visit to the Asian Women’s Resource Centre, ( [link removed] ) in Harlesden last week in an event attended by Her Majesty Queen Camilla. The project is funded by the London Boroughs’ Grants Programme (Priority 2: to support the Ending of Harmful Practices).

Marking the charity’s 45th anniversary, The Queen officially opened the centre’s Healing Garden, a space for reflection and rejuvenation for women, staff and the wider community.

The event was also attended by Brent Council Leader Cllr Muhammed Butt, Mayor of Brent Cllr Tariq Dar MBE, representatives from the Mayor’s Office for Policing and Crime and representatives from other London Councils-funded projects, such as Women’s Resource Centre, Imkaan, Ashiana and the Forward Project.

You can find out more about our current (2022-2026) Grants Programme and the funded projects here ( [link removed] ).

Sustainable Neighbourhood Model shortlisted for Future Places Award

The One World Living Sustainable Neighbourhood Model ( [link removed] ) has made the 2025 LGC Awards shortlist. The Model is shortlisted in the Future Places category, which recognises councils that are engaging creatively with innovative suppliers to accelerate decarbonisation and climate resilience, enable greater inclusion, and harness digital technologies.

The Model, hosted on the London Councils website, visualises a sustainable, circular economy, showcasing real life case studies to inspire London boroughs to act to reduce their consumption-base emissions.

Congratulations to all the London boroughs who have been shortlisted for the 2025 awards - you can read this year's shortlist in full here. ( [link removed] )

By-election results

A by-election took place in Brent council's Alperton ward last week (Tuesday 18 February). The by-election was won by Charlie Clinton (Lib Dem). You can read the full result here. ( [link removed] )

A by-election took place in Barking & Dagenham council's Whalebone ward last week (Thursday 20 February). The by-election was won by Rubina Siddique (Lab). You can read the full result here ( [link removed] ).

There were two by-elections in Hammersmith and Fulham last week (Thursday 20 February). The by-election in the Hammersmith Broadway ward was won by Callum Nimmo (Lab). You can read the full result here ( [link removed] ). The by-election in the Lillie ward was won by Lydia Paynter (Lab). You can read the full result here. ( [link removed] )

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In the news this week...

Thirty English councils granted exceptional financial support packages
The Guardian ( [link removed] )

Revealed: London boroughs on brink of bankruptcy beg ministers for £500m and long term crisis solution
The Standard ( [link removed] )

London Councils Address Decreasing Demand for School Places
PSE ( [link removed] )

Revealed: How e-bike ridership has soared in central London (and how thousands of cyclists end up being fined)
The Standard ( [link removed] )

What do Londoners really care about in 2025?
BBC Radio London ( [link removed] )

LOTI Workshop: Tackling poverty using a person-centred approach. On Thursday 6 March  (9:30 - 4:00) LOTI and the Royal Borough of Greenwich will host an in-person interactive workshop that will explore how a preventative support model, involving disciplines from across the council, can help prevent and reduce poverty.Find out more and register here. ( [link removed] )

Freedom Pass renewals

If you, or someone you know, have received a reminder email to renew your Freedom Pass, please follow the instructions to make sure you receive a new pass.

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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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