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Your weekly London local government update

02 Apr 25

Response to Spring statement

Following the Chancellor Rachel Reeve’s spring statement last week, Chair of London Councils Cllr Claire Holland ( [link removed] ), said: “The government is right to prioritise boosting economic growth. Whether it’s building new homes, supporting people into work or attracting investment into our local areas, councils have a critical role to play in this mission. However, the crisis in town hall finances is holding us back.

“It’s vital the upcoming Spending Review and planned reform of council funding deliver the investment and financial sustainability boroughs need to drive growth in the capital and across the country. Without this, we risk more and more boroughs entering effective bankruptcy – a situation which would undermine economic confidence, hold back growth, and cost the public purse more in the long run.

“Given the tough fiscal outlook, we must continue to focus on investing in prevention and reform of public services so we can deliver better value for money and better outcomes for our communities. Boroughs are committed to this agenda, but we need funding which enables us to make these long-term changes, as well as dealing with the current pressures which have built up over the last 15 years.”

London Councils is urging the government to use the Spending Review to deliver much-needed investment in local services after more than a decade of structural underfunding and instability – both to provide a sufficient level of funding for existing services, but also to invest in preventative measures to help reduce future need.

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

Westminster Hall Debate

Last week MPs debated the financial pressures facing London boroughs.

The Westminster Hall debate was secured by Calvin Bailey MP (Leyton and Wanstead) and was an opportunity for MPs to discuss the extreme pressures facing boroughs’ budgets.

More than a decade of structural underfunding, combined with rising costs and skyrocketing demand for services such as homelessness support and social care, has led to the current crisis. 

Boroughs receive around 28% less funding per person compared to 2010 and London Councils says boroughs will be left grappling with a funding shortfall of at least £500m in the coming year (2025-26).

You can watch the debate in full here. ( [link removed] )

Freedom Pass renewals

If you, or someone you know was contacted to renew their Freedom Pass by 31 March 2025, there is still time to do so. The online portal will be open until 30 April, so please visit secure.freedompass.org/renew ( [link removed] ) now to start the renewal process.

A grace period will run until 1 May 2025, so expired Freedom Passes will still be accepted by TfL and Bus Operators as a flash pass until this date while you wait for your new pass to arrive.

If you have any questions, you can email the team here. ( [email protected]?subject=Freedom%20Pass%20renewal )

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In the news this week...

Spring Statement: reduction in anticipated funding would leave councils ‘on the brink’ as Reeves emphasises housebuilding impact
Room 151 ( [link removed] )

Chancellor: NPPF changes will add £15bn to GDP
LGC ( [link removed] )

How the housing crisis is driving up council tax
BBC News ( [link removed] )

Textiles plan

Fashion is an important industry for London. However, increasing levels of consumption, and limited options for recycling mean that it is also the cause of significant environmental impacts. The London Textiles Action plan, developed in partnership between London Councils’ One World Living programme (including West London Waste Authority and Wandsworth Council), Greater London Authority, ReLondon and the Ellen MacArthur Foundation, and launched this week, highlights London’s opportunity to become a global exemplar for circular fashion and textiles. You can read more about the action plan and how to get involved 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.
We also run pan-London services like Freedom Pass and Taxicard.
London Councils, 4th Floor, 12 Arthur Street, London, EC4R 9AB

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