The £39bn boost for affordable housing announced at the Spending Review is a “potential gamechanger” for efforts to tackle the housing crisis in the capital, according to London Councils, with the cross-party group arguing it is “vital” London receives its fair share of the national pot.
Boroughs have also welcomed the Spending Review bringing additional investment for children’s social care and temporary accommodation, saying this will help local authorities invest in prevention and reduce the cost of delivering services in the long-run.
Cllr Claire Holland, Chair of London Councils, said: “Increased investment in affordable housing is hugely welcome and critical for tackling the capital’s housing crisis. This is a potential gamechanger in our efforts to accelerate housebuilding and it’s vital that London gets its fair share of this funding.
“However, the outlook for boroughs is still extremely difficult and there remain serious risks to our financial stability. More than a decade of structural underfunding, fast-rising demand for services and spiralling costs have pushed council budgets in London to the brink.
“The upcoming reforms to local government funding are now ‘make or break’ for London boroughs. The resources we receive must match the high levels of need, deprivation and cost of delivering services in the capital.”
