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Londoners 'are the losers' in local government financial settlement
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London Councils has expressed its concern that the provisional Local Government Finance Settlement will severely damage the ability of the capital’s councils to provide quality services for their local communities.
The settlement, announced by Local Government Minister Phil Woolas, sees 20 London boroughs receiving the minimum increase in central government funding for the next financial year.
This means these boroughs will receive only a 2.7% increase in funding towards the growing costs of providing key services including social services, refuse collection and recycling, and tackling homelessness. In contrast, the national average increase is 3.8%.
London Councils Chairman Councillor Merrick Cockell said: “The losers from this extremely disappointing settlement are Londoners themselves.
"Their local councils will now face tough choices between cutting back services or increasing council taxes to meet the needs of their residents and to deliver the Government’s targets.
“We have consistently voiced concerns about the inadequate way London’s population is measured.
"The current system fails to take account of London’s rapidly growing population and its changing needs – and means that boroughs do not receive the funding they require.
“This settlement makes it extremely tough for boroughs to continue their work to improve their residents’ lives.
"We will be seeking to ensure the Government is fully aware of the challenges facing London’s councils so that the capital receives its fair share of government funding.”
According to London Councils, challenges faced by the capital's boroughs include:
Covering the costs of partnership initiatives in the light of budget cuts by local health trusts. Providing temporary accommodation to 62% of the country’s homeless households. Having more than half of England’s severely overcrowded households. Being home to more unemployed people than Scotland and Wales put together. Having the highest rates of child poverty in the country.
