Your weekly update on London local government. [link removed] viewing this? [link removed] Add to safe sender.

Your weekly London local government update

30 Apr 25

Why are London boroughs' finances on the brink? 

London boroughs are grappling with enormous financial pressures. With the government preparing its upcoming Spending Review, and with funding reforms promised promised in 2026/27, London Councils is making the case for restoring stability to town hall finances. This would put boroughs in a much stronger position to deliver services and drive economic growth across the capital.

Our shorth video below sets out the perfect storm facing borough finances – including more than a decade of structural underfunding, rising demand for services, and new responsibilities placed on councils by central government - and what needs to be done to restore stability to local government finances.

( [link removed] )
( [link removed] )

Homelessness emergency poses biggest risk to boroughs' finances

London’s worsening homelessness emergency represents the “single biggest risk” to boroughs’ finances and is pushing town halls towards bankruptcy, London Councils has warned.

Analysis from the cross-party group estimates that skyrocketing numbers of homeless Londoners needing a roof over their heads and spiralling temporary accommodation costs mean boroughs in the capital were forced to overspend on their homelessness budgets by at least £330m in 2024-25. This represents a 60% increase on their original homelessness budget plans for the year.

London Councils’ Executive Member for Housing & Regeneration, Cllr Grace Williams ( [link removed] ), said: “Homelessness spending is fundamentally driven by factors outside our control. Boroughs have a legal duty to provide homelessness support – and we’re seeing homelessness numbers skyrocket while accommodation costs spiral.

“If things carry on as they are, we will see more boroughs’ become effectively bankrupt. This brings massive uncertainty to the future of our communities’ local services, and could ultimately mean more costs to the government when emergency interventions are required.

“London boroughs are doing everything we can to turn this situation around, but we need urgent action from ministers. Only national government has the powers and resources required to bolster councils’ budgets and reduce homelessness pressures – particularly through investing far more in affordable housing.”

How to finance Net Zero 

Securing funding for the work councils are doing to get to net zero  – whether it's to make homes cheaper and greener to heat, or to build charging infrastructure to encourage widespread electric vehicle ownership, is essential.

But with UK Research and Innovation estimating that £20bn a year will be needed for local net zero delivery to 2050, questions around how that work can best be financed are very live.

Following up on our Green Finance Guide ( [link removed] ) (launched in September last year), London Councils' Climate Unit has partnered with economists from Hertfordshire Business School at the University of Hertfordshire to produce Financing Local Net Zero ( [link removed] ) - a policy paper on the public finance routes available to councils to address barriers to climate action.

The policy paper evaluates local borrowing and national funding and financing options in the context of the relative financial frameworks available to local and national government.

( [link removed] )

( [link removed] )

( [link removed] )

In the news this week...

London’s homelessness crisis poses ‘single biggest risk’ to councils, warn leaders
ITV News ( [link removed] )

Cllr Kieron Williams: Comparing funding options for local decarbonisation
The MJ ( [link removed] )

Alison Griffin: Innovation that delivers
The MJ ( [link removed] )

London Councils Pan-London Grants Programme 
2026-2030

London Councils is inviting proposals for the 2026-2030 Pan-London Grants Programme. 

You can read more about the Grants Programme and application process here. ( [link removed] )

Freedom Pass reminder

Freedom Pass users with passes that expired on 31 March are reminded that they will not be able to use their existing pass beyond 1 May.

If you, or someone you know, have moved but not told us, or have not used the pass in the past two years, please ask them to check their email inbox and junk mail as we may have tried to contact them with instructions about how to renew their Freedom Pass using our online portal ( [link removed] ), which will remain open until 30 May.

If you have not received an email or letter, please contact [email protected] ( [email protected]?subject=Freedom%20Pass%20renewal%20(31%20March%20expiry) ) to discuss your next steps

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

You can find contact details for every councillor across all 32 London boroughs and the City of London in our London Government Directory ( [link removed] )

Follow our socials 

[link removed]
[link removed]
[link removed]

or forward to a colleague [link removed]

Comments or queries? Email the editor ( [email protected]?subject=Key%20Issues%3A )

( [link removed] )
visit londoncouncils.gov.uk ( [link removed] )

( [link removed] )

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

| [email protected] ( [email protected] )

Unsubscribe from this newsletter [link removed]