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SubscribeThe finances of the London boroughs are set to remain in a “critical condition” following the chancellor’s Autumn Statement, according to the chair of London Councils.
Georgia Gould said that, ahead of Jeremy Hunt’s statement, London Councils had estimated a £700m shortfall for 2023-24. The increased “flexibilities” he offered on council tax were not the way to fill that financial black hole, she suggested.
“Council tax is not the answer to the inadequate funding we’re grappling with. Council tax rises during a cost-of-living crisis are extremely difficult for the struggling households we’re determined to support. But even if council tax goes up, it could never plug that £700m funding gap.”
Gould said that the boroughs needed “proper investment” from the government. “Just as ministers worked in partnership with councils during the Covid-19 pandemic, we now require support in the face of the current economic emergency.
John Turnbull, president of the Society of London Treasurers, told Room151 that the funding announced for local government in the statement was better than most London treasurers had anticipated.
“However, there are some tough decisions to be made in the context of the cost-of-living crisis, and we remain concerned about the impact of inflation and the post-Covid pressures from social care we are experiencing. Many boroughs will still have significant funding gaps to resolve over the medium term,” he said.
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