Ahead of the Autumn Statement expected to be delivered by Chancellor of the Exchequer Jeremy Hunt tomorrow (17 November), London Councils has briefed London MPs on the challenging
financial outlook facing boroughs.
The energy crisis, soaring inflation, and rising demand for
services has put huge additional financial pressures on boroughs’ budgets and
opened a wide gap between the funding received and the amount spent on local
services. Based on the government’s current funding plans, London boroughs face
a gap of up to £400 million this year and £700 million in 2023/24.
London Councils Chair Cllr Georgia Gould said: “The funding outlook for boroughs is beyond bleak. The scale
of the savings required is colossal and will inevitably mean cuts to the vital
frontline services that so many Londoners rely on.
“Boroughs will do everything we can to protect our
communities but a £700 million funding gap next year will force us into the toughest
of tough decisions unless the government offers new support.
“We’re urging the government to listen to councils’ concerns
and take swift action to avoid a bad situation becoming even worse.”