Skyrocketing inflation is driving £400m of additional budget pressures on boroughs in the capital, London Councils has warned.
Although the government increased local authority funding this year, fast-rising inflation has effectively cut £100m from the financial uplift boroughs received for 2022-23.
With so many Londoners struggling through the cost-of-living crisis, London Councils fears the impact of boroughs’ worsening finance pressures on services for the capital’s most vulnerable residents, as well the repercussions for local economic growth and regeneration plans.
Cllr Georgia Gould, Chair of London Councils, said: “Rising inflation and the cost-of-living crisis are having a crippling effect on families who are having to make increasingly difficult decisions about whether to eat or heat their homes.
“Boroughs welcome the government providing some much-needed extra support to households, and we are seeking a similar intervention to help councils deal with their massive finance pressures."