• Press release

Boroughs' funding fails to reflect 'fast-rising pressures and levels of need'

London Councils has responded to a report from the Institute for Fiscal Studies (IFS) on levels of public spending in areas across England.

Cllr Claire Holland, London Councils’ Executive Member for Communities said:

“We welcome this authoritative and impartial research by the IFS. Unfortunately, it suggests London local government funding is 17% lower than its estimated relative need – the largest gap of any region in England.

“London has some of the worst deprivation in the country. As the 2021 census showed, over the last decade outer London in particular has become more deprived, reflecting demographic and economic changes. Since funding was last updated, London’s total population has grown by almost 800,000 – broadly equivalent to a city the size of Leeds.

“But, as the report highlights, local government funding has not changed to reflect these fast-rising pressures and growing levels of need.

“With funding levels still almost a fifth below where they were in 2010, local government funding reform must take place alongside vital investment across the entire sector to put council finances back on a sustainable path for the long term.

“We remain committed to working with the government to ensuring this happens.”



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