www.londoncouncils.gov.uk
Funding outlook for
London local government
5 March 2013
Jon Rowney: Head of Fair Funding, Performance & Procurement
www.londoncouncils.gov.uk
“I am keen to move to a radically
different system of funding and support
for councils that is built on strong
incentives, is driven by local decision
making and breaks this dependency
[on central government grant]…”
Eric Pickles MP – Secretary of State CLG
www.londoncouncils.gov.uk
Strong Incentives
Business Rates Retention
New Homes Bonus
Localisation of Council Tax Support
Public Health
London Boroughs - Projected income 2010-11 to 2019-20
10.0
9.0
8.0
7.0
6.0
£bn
5.0
4.0
3.0
2.0
1.0
0.0
2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20
*
www.londoncouncils.gov.uk
Spending Review 2010
Public Sector expenditure

-£81 billion by 2014/15
Local Government core funding


-£5.6 billion -19 % in cash terms
-28% in real terms
Further 0.9% reduction in 2015/16 and
2016/17
www.londoncouncils.gov.uk
Reflecting on SR 2010
 Transparent and Comparable?
Delivery Arm of Central Government
The stretching of the 28% ‘Contribution’
 Is it closer to 33%?
The Cut to Local Government
2011-12
0%
-5%
-10%
-15%
-20%
-25%
-30%
-35%
2012-13
2013-14
2014-15
Total
www.londoncouncils.gov.uk
The changing financial
landscape…
www.londoncouncils.gov.uk
‘the local government settlement is
built on the principle of fairness,
which means councils that deliver
for their communities will make
more’.
Local Government Minister Brandon Lewis
www.londoncouncils.gov.uk
Local Government Finance: Risk, Reward and
Competition
Can you build more
homes?
New
Homes
Bonus
Grant
Funding
Topslice
Is your local economy
thriving?
More
local
business
rates
Less local
business
rates
Is unemployment
dropping?
Lower
council
tax
support
costs
Higher
council
tax
support
costs
Pro-growth services are being cut hardest
110
Environmental
Index (2009-10=100)
100
90
Cultural
Highways and
transport
80
Housing
70
Planning and
development
60
50
2009-10
2010-11
2011-12
2012-13