London boroughs’ latest estimate of the overall financial impact of Covid-19 will exceed £2 billion this year – up from £1.9 billion last month. Boroughs have received £587 million in emergency funding from the government, leaving a £1.4 billion gap.

The estimated additional expenditure required because of the virus has increased by £130 million since June, largely due to rising demand for adult social care and homelessness and rough sleeping services.

Cllr Peter John OBE, Chair of London Councils, said: “Boroughs have played a crucial role in London’s response to Covid-19.

“However, the pandemic has played havoc with our finances. In March the government assured councils that it would do ‘whatever is necessary’ to support our efforts to help residents and businesses through the pandemic. But the extra money provided so far is not nearly enough to cover our costs. Boroughs are instead left facing a massive £1.4 billion shortfall.

“We’re extremely concerned about the implications for London’s local services, which so many Londoners rely on, and the capital’s post-pandemic recovery. The government must move quicker to stabilise council finances and to commit to long-term, sustainable funding for the sector as part of its upcoming Comprehensive Spending Review.”

London Councils has stated its strong opposition to “any moves towards a planning free-for-all”.

Responding to the government’s white paper on planning policy, London Councils expressed concern that the changes will severely restrict boroughs’ ability to uphold quality standards and to ensure affordable housing targets are met.

Cllr Darren Rodwell, London Councils’ Executive Member for Housing & Planning, said: “These changes are potentially disastrous for Londoners and could reduce the amount of affordable housing built in the capital.

“London is suffering the most severe homelessness crisis in the country and the chronic shortage of affordable housing is at the heart of this. It would be a massive step backwards if the government undermined boroughs’ ability to ensure new development in London includes affordable homes.

“While we support ambitions to build more housing, we strongly oppose any moves towards a planning free-for-all – which would lead to lower quality and fewer affordable homes in London.

“We will be sharing our concerns with ministers. Councils certainly need more detailed information and reassurance from the government over how these changes would work.”

The government has this week agreed to extend the deadline for local authorities to process discretionary grants to small businesses. On 23 July the government announced that all three of its business support grants schemes, including the more complex discretionary scheme, would close on 28 August.

Following a letter from London Councils' Executive Lead for Business, Good Growth and Europe Cllr Claire Coghill, that highlighted the difficulties London businesses would face in meeting the deadline, Secretary of State for Business Alok Sharma has written to chief executives to confirm the government will now allow until 30 September to work through applications and make final payments under the scheme.

The government has launched Shop Local Week (10 - 16 August) to encourage shoppers to return to their local high street and shop safely.   

London's boroughs have been supporting local retailers in their phased re-openings since 15 June.

Shop Local Week aims to reassure shoppers that safety is paramount, and that their custom is valued by local high street shops and businesses. It gives customers an opportunity to show appreciation and support for their ‘locals’.

Shop Local is a dedicated week within government’s Enjoy Summer Safely campaign, which aims to inspire the public to get back to the things they enjoy, while following coronavirus safety guidelines.