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Your weekly London local government update

12 Mar 25

Spending Review must address 
'severe and worsening pressures' on local government finances

A Local Government Information Unit (LGIU) report ( [link removed] ) that finds fewer than one in 10 senior council figures are confident in the sustainability of local government finance is just the latest evidence of “the severe and worsening pressures” facing borough finances, according to London Councils.

Responding to the LGIU report, London Councils Chair Cllr Claire Holland ( [link removed] ) said: “This stark report chimes with what we see in the capital, where severe and worsening pressures are pushing London boroughs towards bankruptcy.

“The combination of years of structural underfunding, fast-rising demand for services, and spiralling costs have created a perfect storm for London boroughs’ finances.

“The Spending Review is a crucial opportunity to restore sustainability to council funding. This would put us in a much better position to invest in priorities such as sustaining local services, building more affordable homes, and driving the economic growth we all want to see.”

It was recently confirmed that seven London boroughs will receive Exceptional Financial Support from the government, accounting for more than a third (£418m) of the national total of £1.4bn. However, London Councils argues these emergency borrowing measures burden boroughs with further debts and will not be enough to return them to a stable financial footing.

With analysis showing that boroughs in the capital will be left grappling with a funding shortfall of at least £500m in the coming year (2025/26), London Councils is urging the government to use the Spending Review to deliver much-needed investment in local services after a prolonged period of underfunding and instability. Boroughs in the capital receive around 28% less funding per Londoner compared to 2010.

Among London Councils’ key asks is a call for overall council funding to be restored to 2010 levels by 2028/29, requiring real-terms increases of 4% every year. Priorities also include protection of funding for demand-led services to meet forecast levels of growth, access to a broader range of funding sources, and investment in the early intervention and prevention services that bring the most benefits over the long term.

London Councils' Spending Review representation to the government can be found here. ( [link removed] )

By-election results

There was a by-election in Barnet’s Finchley Church End ward last week (6 March 2025). The by-election was won by Josh Mastin-Lee (Con). You can read the result in full here. ( [link removed] )

There were two by-elections in Hounslow last week (6 March). In the Brentford East ward, the by-election was won by Max Mosley (Lab). In the Syon and Brentford Lock ward, the by-election was won by Theo Dennison (Ind). You can read the results in full here ( [link removed] ).

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In the news this week...

Councils disappointed as London excluded from Government's £1.5bn plan to tackle deprivation
The Standard ( [link removed] )

LGC council tax tracker: 80% plan maximum hike
LGC ( [link removed] )

Piali Das Gupta: For the long haul

The MJ ( [link removed] )

The Mayor of London and London Councils have come together with local leaders from business, education and the voluntary sector to launch a bold new plan to turbocharge economic growth and increase prosperity across the capital. You can read more about London's Growth Plan here. ( [link removed] )

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

London Local Government 
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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