London Councils' response to the Autumn Budget 2018

  • By Gemma Kappala-R...


Cllr Peter John OBE, Chair of London Councils, said:

“London is a vibrant and diverse city that delivers a net fiscal surplus of £32.5 billion a year to the national economy. We need public services to match our capabilities and ambition.

“The Autumn Budget does little to offer a long term vision for the future of local government that would put London boroughs in a financially sustainable position.

“The cash injections and other short term measures for local government delivered in the Budget do not match the scale of the challenges facing London’s local services.

“London boroughs have experienced core funding reductions totalling £4 billion during this decade and we do not have the devolved powers and freedoms afforded to other major global cities. 

“Funding reductions coupled with lack of autonomy are putting unprecedented pressure on children’s services, adult social care and housing, impacting people’s lives and having a knock-on effect on the NHS, police and schools. 

“With vulnerable residents and vital public services on the line, a long term vision for the future of local government must be a priority for next year’s Spending Review.”


Notes to Editors:

Announcements likely to be relevant to London local government:

£650 million for adult and children’s social care – £240 million for adult social care in 19-20 (on top of the £240 million winter pressures funding recently announced for 18-19), and a further £410 million for both adult and children’s social care in 19-20.

£2 billion boost to mental health services, which covers crisis services, targeted support for children and young people, mental health ambulances and a crisis hotline.

£400 million additional in-year funding for schools, averaging at £10,000 per primary school and £50,000 per secondary school.

£675 million in co-funding for a Future High Streets fund.

Business rates relief for small businesses with a rateable value of less than £51,000 – a discount of one third of their bill for the next two years. 

Mandatory business rates relief for public lavatories.

Reduction in contributions towards apprenticeship training costs from small employers – from 10% to 5%.

Additional £1 billion over the next five years to aid transition on to Universal Credit. The Universal Credit taper rate will decrease from 65% to 63% and work allowances for Universal Credit claimants will increase by £1,000 a year.

£420 million for a pothole repair fund.