London councils fear 'beyond bleak £700m funding gap'

Various councils in London have already seen bin workers go on strike this year

London Councils have warned local authorities in the capital could face up to £700m of cuts unless the government boosts their funding.

The cross-party group says savings on this scale would inevitably mean reductions to London's local services.

Chair of London Councils Georgia Gould labelled the funding outlook for the 32 boroughs as "beyond bleak".

The government said it is working with councils to help minimise the impact of inflation rises.

London Councils, a cross-party organisation that represents London's 32 borough councils and the City of London, said issues around the energy crisis and soaring inflation have heaped pressure on budgets.

Based on the government's current funding plans, London boroughs face a gap of up to £400m this year and £700m in 2023-24, it said.

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Ms Gould said: "The scale of the savings required is colossal and will inevitably mean cuts to the vital frontline services that so many Londoners rely on.

"Boroughs will do everything we can to protect our communities, but a £700m funding gap next year will force us into the toughest of tough decisions unless the government offers new support."

The Department for Levelling Up, Housing and Communities said London authorities had benefited from a rise in funding.

Analysis

Tim Donovan, BBC London political editor

Inevitably the capital's boroughs may be accused of shroud-waving.

But it's worth noting that London Councils is made up of authorities from all three main parties and they agree on this public appeal to government and making clear how desperately they feel.

The warnings also chime with concerns being aired by the Local Government Association.

Rising energy bills and inflation are already putting pressure on council services and history tells them that when public spending cuts are needed - it's often the unfashionable and little understood cause of local government that gets it in the neck.

So, there is little optimism about what Chancellor Jeremy Hunt will push their way in his autumn budget of 17 November.

As to where the axe falls, inevitably councils will have to do everything they can - and where they have a statutory duty - to protect services like care for children, the elderly and the vulnerable.

How that can be done while keeping up standards on emptying our bins, cleaning our parks and running our libraries is the big question.

A spokeswoman added: "We recognise councils may be concerned about their budgets and are working very closely with them to understand the impact of inflation.

"This year, we have made an additional £3.7bn available to councils in England, including an extra £685m in London.

"Through the Energy Bill Relief Scheme, we are also providing a discount for councils dealing with rising energy costs this winter."