London borough’s seeking emergency budget boost during cost-of-living crisis

London boroughs are seeking additional funding support to help residents during the cost-of-living crisis, despite Chancellor Kwasi Kwarteng’s announcement of a ‘mini-budget’.  

On Friday, Chancellor of the Exchequer, Kwasi Kwarteng outlined his ‘mini-budget’ which includes reversing the increase on national insurance, stamp duty cuts, energy price cap freeze and income tax cuts.  

However, cross-party group London Councils is calling for a close partnership between local and central governments to create a financial package, like the one created during the pandemic, to help ease money pressures.

Councils in the capital, which represent all 32 boroughs in London, warn that fast-rising costs and demands for services means the city must make £400m of savings this year. 

This could rise to £700m next year without an increase in funding that’s closer to the rate of inflation. 

The representative group has also stressed the challenges the city is facing regarding increasing homelessness rates and private rents in the UK, as well as residents’ businesses struggling with energy costs.  

Cllr Darren Rodwell, London Councils’ Executive Member for Regeneration, Housing and Planning has said: ‘The combination of rising rents and worsening cost-of-living crisis means many tens of thousands of Londoners are at real risk of homelessness in the coming months.’ 

Adult and Children’s social care services are also under worsening pressure in the capital, leading London boroughs to ask for immediate funding. 

London boroughs are arguing that bolstering social care provision is essential to maintain the cities NHS performance –including through reducing delays in hospital discharges and freeing up beds for patients.  

However, London Councils is also urging action to be taken on long-term issues, including the delivery of net-zero and securing greater devolution for local communities. Boroughs are emphasising the role London can play in driving economic recovery. 

Cllr Georgia Gould, Chair of London Councils said: ‘With thousands of Londoners already struggling to make ends meet, the government has a critical opportunity to announce further help for households and the services they rely on.’ 

‘Councils are already providing a safety net to communities and doing all they can to support people who are struggling. Financial support from the government for councils is crucial for continuing this work.’  

Photo by Benjamin Davies