Local Government Finances: London

Endorses the comments made by all MPs regarding the broken local government funding system, highlighting that outer-London areas have been underfunded and unfairly treated for decades.

Highlights the severe budget cuts faced by Enfield and Haringey since 2010, with Enfield losing £200 million and suffering from damping. Describes additional pressures on adult social care and children's services in Haringey.

Barnet council processes 10 homelessness applications every single day—more than double the number it was processing just two years ago. This, coupled with additional spending on educational needs and adult social care, is crippling councils’ budgets.

Highlights his experience as a councillor in Bexley and the ongoing funding crisis faced by the local authority, including staff redundancies and selling assets to balance budgets.

Addressed short-termism and poor governance in Hillingdon, highlighting low reserves and the need for long-term financial investment. Emphasized the impact of not investing in early years services leading to later pressures. The hon. Gentleman questioned whether the previous Government's funding was adequate for London boroughs, highlighting significant increases in public health funding, homelessness funding, local government funding, and pothole funding under this Government.

Highlights that significant increases in funding are often offset by other cuts or charges. Discusses the impact of ringfenced grant funding to tackle homelessness and the national insurance contributions rise, leaving local authorities net worse off. Points out a 29% increase in rough sleeping compared to the previous government period. The hon. Gentleman raised the issue of the garden tax in London boroughs and expressed concerns about financial pressures in outer London due to unfunded costs such as asylum and rough sleeping.

In her constituency, Brent council has had to cut its budget by £220 million since 2010. She supports the need for change in government policy.

Describes the impact of austerity measures on local councils, highlighting significant cuts in funding leading to a housing crisis and increased homelessness. Proposes five quick measures for Government support including raising the local council housing allowance and delivering multi-year settlements.

He agrees on the importance of addressing housing issues, including rental accommodation and price management to ensure people can afford to live in social and rented housing.

Encouraged Westminster city council to use new council tax powers for second home owners, which could raise £11 million a year. Praised the pioneering work on insourcing temporary accommodation.

Residents of Havering pay high council tax but receive inadequate services due to an outdated funding formula that does not reflect demographic changes, such as a fast-growing child population. The borough faces significant financial pressure from increased employer national insurance contributions.

London faces a funding crisis due to austerity cuts since 2010, with boroughs receiving 28% less per resident. Outer London boroughs like Sutton are getting the worst deal, with outdated funding formulae leading to significant mismatches between allocations and needs.

Emphasised the need for the Government to address funding issues affecting local councils, citing a £5 million impact on Bexley council from contract inflation and the jobs tax.

Questions why the current government has cut housing targets for Labour councils in central London, prompting a response about addressing challenges inherited from past failures.

Councils are at the coalface of politics and are leaders in delivery. Boroughs are now at crisis point due to housing emergency, pushing London councils into spending £4 million a day on temporary accommodation.

For Bromley, the story of underfunding started in 1997. The net budget has reduced by more than a quarter in real terms and nearly two fifths per person. If Bromley received the average settlement grant of funding per person for London, the borough would receive an additional £80 million a year.

Discussed temporary accommodation costs, special educational needs challenges, and the visitor economy in central London. Highlighted a 173% increase in rough sleeping and a 69% increase in temporary accommodation over the last 14 years.