London Boroughs Face Significant Funding Gap
London boroughs are facing a substantial funding shortfall, with a current gap of £1 billion and a predicted £4 billion gap in the coming years.
According to new analysis from London Councils, half of London boroughs may require emergency support to avoid bankruptcy by 2028 due to the funding squeeze.
The cross-party group warns that cuts to local services will be "inevitable" as a result of the funding gap.
- The funding gap is driven by several factors, including the government's reforms to council funding.
- The current proposals set out in the Fair Funding Review 2 are expected to contribute to the finance pressures.
The figures are based on a survey of all 33 London local authorities, organized by the Society of London Treasurers.
Author's summary: London boroughs face a £4bn funding gap.