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London’s disastrous grant settlement confirmed
London boroughs’ hopes for a change to the disastrous local government finance settlement were dashed today when the final figures for councils’ funding from 2008/09 to 2010/11 were announced.
Despite strong protests to ministers from London Councils and many London boroughs, about the potential impact on local services and communities in the capital, no significant changes have been made to the grant allocations in London.
From 2008/09, 29 boroughs will be on the grant ‘floor’, receiving the minimum increase in grant. For the following two years, 24 London boroughs will remain on the grant floor.
New analysis shows that if current trends continue 15 London boroughs, almost half of the total, will be on the grant floor for the next ten years.
Commenting on the final settlement, Chairman of London Councils Councillor Merrick Cockell said:
“Despite our best efforts ministers have been unwilling to acknowledge the disastrous consequences of this settlement on local services and communities in London.
The grant floor is substantially below the level of inflation. London’s complex problems arising from ongoing population growth and mobility, social care needs, and waste disposal costs, have been totally ignored by the Government.
Unless the Government increases the minimum level of funding to a more realistic level, the capital’s boroughs will struggle to provide adequate or appropriate services for Londoners for at least the next three years.”
Notes to editors
- The level of the minimum increase in funding is also called the ‘grant floor’
Table: Grant Floors
| 2007/08 Comparison | 2008/09 | 2009/10 | 2010/11 | |
| Grant Floor | 2.7% | 2.0% | 1.75% | 1.5% |
| No. of London boroughs on grant floor | 20 | 29 | 24 | 24 |
- London Councils is calling for the Government to increase the level of the floor in 2008/09 to at least meet the level of inflation.
Table: Current levels of inflation:
| CPI | RPI - x | RPI |
| 2.1% | 3.1% | 4.0% |
- This would cost only £43 million and should be achieved by providing additional reserves targeted at floor authorities rather than scaling back further the increases for the authorities above the floor.
For press enquiries please contact: Holly Sutton on 020 7934 9842 Holly.sutton@londoncouncils.gov.uk Fax 020 7934 9777
For non-media enquiries contact: London Councils, 59½ Southwark Street, London SE1 0AL. Tel 020 7934 9999
