Following the government's announcement that its upcoming spending review will only cover a single year rather than a three-year period, London Councils' Chair Cllr Georgia Gould, said: “This is a hugely disappointing development which misses an opportunity to provide councils with much-needed financial certainty and to help us deliver the services our communities rely on. It is vital that the government urgently addresses the growing crisis in local government budgets.
“Boroughs are at the forefront of London’s response to the ongoing pandemic, with council services playing a crucial role in caring for older and more vulnerable residents, housing the homeless, supporting businesses, and keeping Londoners safe. These services are essential for helping London recover and for addressing the stark inequalities the last few months have made clear.
"However, boroughs are facing enormous pressures after a decade of government funding reductions and months of lost income and increased spending to support our communities through the pandemic. Even with the government’s interventions we’ve seen so far, boroughs are still expecting a £1 billion funding shortfall this year.
“The government should use the spending review to stabilise council finances and deliver a sustainable solution for social care funding. We will continue highlighting the key finance pressures facing boroughs and making the case for long-term investment in London’s local services.”