← Back to Westminster Hall Debates

Inner-London Local Authorities: Funding — [Dr Andrew Murrison in the Chair]

10 February 2026

Lead MP

Helen Hayes
Dulwich and West Norwood
Lab

Responding Minister

Alison McGovern

Tags

EconomyTaxationHousing
Word Count: 9266
Other Contributors: 9

At a Glance

Helen Hayes raised concerns about inner-london local authorities: funding — [dr andrew murrison in the chair] in Westminster Hall. A government minister responded.

Key Requests to Government:

The hon. Member asks the government to increase the subsidy for temporary accommodation costs closer to actual housing expenses, raise the rate of local housing allowance, and consider removing the cap on recovery grants for Lambeth council to provide additional funding. She also requests the government to ensure that social housing sites are viable and deliver new homes at pace.

How the Debate Unfolded

MPs spoke in turn to share their views and ask questions. Here's what each person said:

Lead Contributor

Dulwich and West Norwood
Opened the debate
The hon. Member is concerned about the significant cuts to local authority funding in inner London, which has led to a reduction of 60% in grant funding from central government over the past decade. She highlights rising service costs due to an ageing population and increased demand for social care, special education needs services, and temporary accommodation. The hon. Member also mentions that Southwark council spends £5 million per day on temporary accommodation for those who cannot afford stable housing.

Government Response

Alison McGovern
Government Response
Announced an additional £740 million in grant funding, including a £440 million uplift to the recovery grant. Mentioned that of this £2.6 billion investment over three years, £400 million is supporting London places affected by historical funding cuts and there is an additional £272 million for homelessness services, bringing the total investment to £3.5 billion. Stressed the need to realign council funding with deprivation needs and committed to ending wasteful competitive bidding while simplifying funding mechanisms. Noted that nine in ten councils will receive funding matching their assessed needs by 2028-29, up from one third before reforms. Addressed specific concerns raised about temporary accommodation, visitor levies, EFS usage, SEND deficits, and social care services.
Assessment & feedback
Summary accuracy

About Westminster Hall Debates

Westminster Hall debates are a chance for MPs to raise important issues affecting their constituents and get a response from a government minister. Unlike Prime Minister's Questions, these debates are more in-depth and collaborative. The MP who secured the debate speaks first, other MPs can contribute, and a minister responds with the government's position.