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Key Issues from London Councils

Your weekly London local government update

20 Aug 25

Funding Review risks dramatically underestimating need in London

The government's consultation on its proposed approach to local authority funding reform through the Local Government Finance Settlement from 2026-27 closed on Friday.


London Councils' submission highlights serious issues within the proposals that risk dramatically underestimating levels of need for local services in London.


Cllr Claire Holland, Chair of London Councils, said: “Reforms to council funding are long overdue. It's critical that funding is distributed fairly and efficiently on the basis of need, but the current proposals risk dramatically underestimating levels of need in London and other parts of the country, particularly in terms of deprivation and demand for children’s services.

 

“After more than a decade of structural underfunding in local government, it is more important than ever that councils receive resources which genuinely match need in their local area. This is vital for restoring town halls’ financial stability and sustaining hard-pressed local services in the years to come.”


London Councils has raised particular concerns around the proposed methodology to calculate needs for children's services that could see London boroughs' funding share for such services decrease by £1.5bn.


You can read more about our concerns regarding the children's services foumula in this MJ article; and you can read our detailed briefing on the Fair Funding Review 2.0 proposals here.

Do It London

The London HIV Prevention Programme (LHPP) has launched a vibrant new phase of its flagship campaign, Do It London, aimed at ending new HIV transmissions across the city.


Running to October 2025, the campaign brings fresh energy, humour, and cultural resonance to HIV prevention messaging, making it part of everyday London life.


Funded by all 33 local authorities, LHPP is a pan-London initiative aligned with the national HIV Action Plan’s ambitious goals: zero new infections, zero preventable deaths, and zero stigma by 2030.

Case studies in prevention

To celebrate 60 years of the London boroughs, each week, London Councils is sharing prevention case studies highlighting how preventative action by London boroughs is helping to save money and improve the lives of their residents.


This week, our case study is from RB Kensington & Chelsea, where the council is supporting local young people looking for education, employment and training opportunities.


You can read Kensington & Chelsea's case study in full on our LinkedIn page here.

In the news this week...

Michael McVicker: Fix the flawed children's funding formula

The MJ

Joanne Pitt: Fair funding alone won’t secure sector’s future

LGC

Angela Rayner’s council plan ‘threatens basic services in London’

The Times (£)

With fewer renters than ever having a living room, this is why the death of the communal space matters

The Independent

Sector warns Government over rental crackdown

The MJ

London Local Government 

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