The capital will continue to lose out on millions of pounds of funding because the government has decided not to act to ensure the population is counted properly - London Councils has warned today.

A 2007 change to the way the Office for National Statistics (ONS) calculates population led to London's population projection being cut by over 100,000 - in direct contradiction to London boroughs estimates of their own local population.

Because population data plays a key role in determining council funding, this change meant that London's public services lost out on £130 million of vital funding.

While the ONS has now recognised that its population data is not fit for purpose, it does not plan to address the change in methodology which led to London's loss of funding.

London Councils' Chairman Councillor Merrick Cockell said:

"It simply beggars belief that ONS has ruled out addressing the mistake it made when it changed the way it develops population estimates. This means that Londoners and their public services will continue to lose out on funding - and at a time when services are already feeling the pinch.

"If the government is committed to developing better population data, then it must address this failing."

In September 2008, the government responded to a Treasury Select Committee report on population statistics to accept that the Office for National Statistics population estimates were flawed. It committed itself to work with local government to improve migration and population statistics.

However there are currently no plans to address the change to the methodology that led to the loss of funding to the capital's public services.

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