Lib Dems urge Labour not to ‘turn their back’ on London amidst proposed council funding cuts

EMBARGO: Immediate Release 

The Liberal Democrats have urged Labour to not ‘turn their back’ on London amidst the government’s proposed changes to council funding allocation as part of the Fair Funding Review 2.0.

The government's proposed formula for deprivation does not fully take housing costs into account and will result in significant cuts for London, the party has warned. Over the next three years, some inner London boroughs could face real terms funding cuts of 11-12%, according to estimates by the Institute of Fiscal Studies (IFS).

London has the highest housing costs in the country, with many residents effectively being priced out of their local communities. It is estimated 1 in 50 Londoners are homeless and living in Temporary Accommodation. In addition, the capital also has the highest rate of child poverty in the country and the highest rate of local authorities reliant on Exceptional Financial Support.

The Liberal Democrats have raised their concerns about the impact of further cuts on vital local services and called on the government to ensure that London receives fair funding.

Lib Dem Spokesperson for London and MP for Sutton and Cheam Luke Taylor said:

“London has huge swathes of deprivation - including the highest rate of child poverty in the country and councils budgets are on the brink.

“Under the previous Conservative government, councils in London were bled dry with many having to cut back on essential services for residents.

“Labour must not turn their back on London. It is now up to both the Labour Mayor and Government to ensure residents across the capital get the funding they deserve and desperately need.”

ENDS