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Your weekly London local government update

24 Dec 25

Provisonal Local Government Finance Settlement 2026/27

Last week the government published its 2026/27 Provisional local government finance settlement ( [link removed] ) for English councils. The first multi-year settlement in a decade, it covers three years from 2026/27 to 2028/29.

Following the announcement, Chair of London Councils, Cllr Claire Holland ( [link removed] ), said: “A combination of long-term structural underfunding, skyrocketing demand for services and spiralling costs has left town hall finances across the capital under enormous strain.

“Delivering the first multi-year settlement in ten years is an important step in the right direction and the changes made to the original funding reform proposals will ensure the funding allocated through this settlement better reflects demand for local services.

"In particular, we welcome the decision to use up-to-date council spending data to determine allocations and deprivation measures that factor in housing costs – this is a far more accurate approach to measuring deprivation and its impact on levels of need, not just in London but across the country.

“Alongside this, we are pleased to see the additional investment in boosting local SEND provision recently announced by the government. This sort of investment is vital for managing the impact of SEND delivery on local authority budgets.

“Despite the positive progress being made, the outlook for council finances in London remains extremely challenging. We are grappling with a £1 billion budget shortfall this year and more and more boroughs are likely to require emergency borrowing to plug the gap. Stabilising our budgets is critical for  sustaining local services, building affordable homes and driving the economic growth we all want to see in our communities. We will continue working with the government to bring about the funding and policy changes needed to restore stability to local government finances.”

Record number of children in London homeless at Christmas

Worsening homelessness pressures in the capital mean more than 100,000 children in London will spend Christmas in temporary accommodation, London Councils has warned.

Analysis of the latest government homelessness data reveals

An estimated 210,000 Londoners will be homeless and living in temporary accommodation on Christmas Day. This equates to around one in every 50 residents of the capital. The estimated figure includes 102,000 homeless children – an 8% increase since last year, and a 35% increase compared to 2021. Based on average class sizes in the capital, London Councils estimates there is at least one homeless child in every London classroom.

London Councils’ Executive Member for Housing &
Regeneration, Cllr Grace William ( [link removed] )s, said: “It is heart-breaking that so many children in the capital are homeless and set to spend Christmas in temporary accommodation.

“London is the epicentre of a national homelessness crisis that has been years in the making, and the situation here is nothing less than an emergency. The impact on children is devastating and the pressures on local services are unsustainable.

“Boroughs are working hard to support homeless Londoners as best we can, but we need more action at a national level too. We welcome the government’s new homelessness strategy and its focus on a cross-departmental approach to tackling this crisis. It is vital this delivers the policy changes and resources we need to turn the tide on homelessness in the years ahead.”

You can read our briefing on London's homelessness emergency and the temporary accommodation trap here [PDF]. ( [link removed] )

ANPR cameras to aid enforcement of London Lorry Control scheme

London Councils has approved plans to introduce automatic number plate recognition (ANPR) cameras to assist with the enforcement of the London Lorry Control Scheme (LLCS).

Following a successful pilot programme, ANPR cameras will be introduced in London to support enforcement of the scheme, complementing the work of Enforcement Officers across the capital.

The LLCS is designed to manage the environmental impact of journeys made by heavy goods vehicles (HGVs) in London by restricting access to residential roads at certain times. The scheme serves to minimise traffic and noise pollution in residential areas during unsociable hours to protect the wellbeing of Londoners. The scheme has been in place since 1985.

London Councils’ Executive Member for Transport and Environment, Mayor Brenda Dacres OBE, ( [link removed] ) said: “The introduction of ANPR cameras will help the London Lorry Control Scheme make use of modern technology, supporting the work of Enforcement Officers on our streets and increasing compliance with the scheme across London.

“This change will allow enforcement to be applied more consistently, efficiently, and fairly, as well as minimise overnight disruption to London’s communities, allowing Londoners to live in a cleaner, quieter city.”

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In the news this week...

London's shame: More than 100,000 children will be homeless in capital this Christmas
The Standard ( [link removed] )
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London Councils welcomes deprivation-based funding shift as ‘far more accurate’
Inside Housing ( [link removed] )
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‘Up to 100’ councils may apply for EFS
LGC ( [link removed] )
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Cameras to start recording London lorry ban breaches
MotorTransport ( [link removed] )
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Crackdown on rogue landlords renting out mouldy and unsafe homes to be expanded across London boroughs
The Standard ( [link removed] )
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London Councils has launched a new website for the Freedom Pass, which has been developed to enhance the experience for Freedom Pass users and features improved content, design, and layout.

You can explore the new website, which includes all you need to know, and what to do if you have changed your name or address, here ( [link removed] ).

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London Local Government 
Directory

You can find contact details for every councillor in London in our London Government Directory here ( [link removed] ).

London Councils Committees

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Executive Committee ( [link removed] )

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Transport & Environment Committee ( [link removed] )

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Transport & Environment Executive Committee ( [link removed] )

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Grants Committee ( [link removed] )

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Grants Executive Committee ( [link removed] )

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

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visit londoncouncils.gov.uk ( [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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