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.