London Councils' response to the publication of the 2019/20 Local Government Finance Settlement
Cllr Peter John OBE, Chair of London Councils, said:
“This is a reminder that austerity is not over for local government and confirms that London boroughs have experienced a huge 63% reduction to our core funding during this decade. In 2019-20 alone London boroughs will need to make savings of more than £500 million to balance their budgets.
“Today’s consultation on the Fair Funding Review could compound London’s funding challenges. The simple truth is that it is more expensive to run services in areas with high deprivation, with high salary and building costs, and where the population is growing rapidly. The new formula for allocating funds should reflect that.
“This makes it all the more vital that next year’s Spending Review ensures councils are financially sustainable in the long term through increased funding and devolved powers. If not, central government risks destabilising essential local services, piling further pressure on the police and the NHS and holding back growth and productivity.”