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Your weekly London local government update

03 Dec 25

Budget: Reaction and analysis

Responding to last week's Budget, London Councils Cllr Claire Holland, welcomed measures, including transport investment and an overnight levy, that can boost growth in the capital and help grow national prosperity.

“London is a crucial part of the UK economic engine and we welcome the measures announced today that will help us boost growth in the capital and contribute to national prosperity", she said.

“We have consistently made the case for the DLR extension to Thamesmead, along with the Mayor of London and business leaders. We are pleased to see the Chancellor backing delivery of this vital project, which will help unlock thousands of new homes and jobs

"Greater fiscal devolution and local empowerment is critical to addressing the crisis in council finances and stalled growth. We welcome confirmation that London will be able to introduce an overnight accommodation levy. This is something we have long called for and we look forward to working with the government and the Mayor on the design and implementation of the levy, in order to ensure this is a success for Londoners and our tourist industry.

“It is vital that a fair portion of the revenue raised from any levy is retained locally by boroughs, so those parts of the capital experiencing high volumes of tourism have the resources they need to invest back into their area in order to manage pressure on services and support growth, with the remaining funds invested across the capital to support pan-London services and local growth opportunities.

“We have repeatedly called for reform of the council tax system, but this must be done in a way that gives local authorities more freedoms and flexibilities rather than fewer, and maintains the principle that revenues raised locally are retained locally. We will be looking at the government’s proposal for a council tax surcharge on higher value properties in more detail and will continue to make the case for an approach that is fair and empowers local authorities.

“In the face of the urgent challenges for London’s economy and town hall finances  – particularly housing and homelessness pressures – we know that further policy action is needed at a national level. We will keep working with the government to restore stability to budgets, sustain local services, and help drive growth in our communities.”

Budget deep dive

London Councils provided an 'on the day' briefing that takes a closer look at a raft of measures announced in the Budget that will impact local government and London. These include Council Tax, Business Rates, Devolution and Integrated Settlements, Housing, Transport, Education, Social Care, Welfare, Asylum Seekers and Refugees, Employment and Business Support, Health and Prevention, Environment, and the Cost of Living. You can read our detailed briefing here. ( [link removed] )

Grants Programme 2026-30

We are proud to announce funding for our 2026-30 Grants Programme. The Programme is delivered in partnership with the boroughs, alongside voluntary and community sector organisations and will invest £25 million into voluntary organisations supporting Londoners facing homelessness and domestic or sexual abuse.   

The current 2022-26 programme has helped over 9,400 residents sustain suitable accommodation and services and supported over 8,100 domestic abuse survivors to rebuild their lives. It also enabled more than 7,100 people at high risk of homelessness to avoid losing their homes and over 40,000 people experiencing domestic abuse to access information, advice and emergency refuge accommodation, so far.

Find out more about the Grants Scheme here ( [link removed] ).

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 the City of London, which is integrating and coordinating services across teams to support vulnerable residents at risk of homelessness

You can read the case study in full on our LinkedIn page ( [link removed] ) and all of our prevention case studies here ( [link removed] ).

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In the news this week...

What does the Budget mean for London?
BBC News ( [link removed] )
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Budget: Reaction as it happened
LGC ( [link removed] )
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Autumn Budget 2025: reaction from the sector
Local Government Lawyer ( [link removed] )
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London councils confirm data accessed and copied in major cyber attack
The Standard ( [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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If you have any questions about the Freedom Pass renewal, visit our website here. ( www.londoncouncils.gov.uk/services/freedom-pass/renewing-your-freedom-pass )

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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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