Southwark council was today set to lead a protest in Parliament Square as a budget crisis swept town halls across London. The local authority said it is facing a blackhole of £102 million, driven by the skyrocketing demand for social care and temporary accommodation.
Funding cuts and council tax fears
Under Labour's "Fair Funding" review many London town halls are set to have their budgets slashed from April, prompting leaders to warn of huge council tax rises.
Southwark council Green leader James McAsh has launched a calculator, which gives residents an opportunity to decide what services could be cut, balance the budget and see the impact that savings could have.
McAsh's warning on savings
He said: "We have to make £102m in savings over the next three years – driven by cuts to our Government funding, growing demand for vital services and rising costs."
"We want to protect the services that residents rely on as we work to create an affordable, safe and green borough. We are calling on the Government to reverse the funding custs, standing shoulder to shoulder with residents and defending Southwark's interests."
"The figures are startling: one in three children in our borough lives in poverty after housing costs - higher than the national average. Families are being forced into impossible choices, and our communities deserve better."
"We're starting a conversation with local people to help show what the council does so they can tell us what matters most to them in their community. Residents' experiences, knowledge and priorities will shape what happens next and int he future so we can build the future of our borough together."
Other boroughs brace for rises
Hammersmith and Fulham council has braced residents for a 150% council tax rise following sweeping cuts to its funding by central government. It has warned it is losing 40% of its £222 million annual budget.
The Labour-run authority, along with Westminster, Kensington and Chelsea, Wandsworth, City of London and Windsor and Maidenhead, has been given the power to raise council tax bills above the 5% cap next year to balance the books.
Wandsworth has already proposed a 94% increase. The borough currently has the lowest bills in the country, with residents in benchmark Band D homes paying £1,020-a-year including the City Hall surcharge. From April 2027, this is expected to be almost £2,000.
Meanwhile, Westminster has said bills will need to rise 200% unless there are significant cuts to services.
Lambeth council is also understood to have joined Bromley in examining whether it could get special government permission to increase bills by more than the 5% maximum without holding a referendum. Lambeth town hall is predicting an almost £130 million blackhole in its budget by 2029/30 due to rising service costs, driven predominantly by increasing demand for temporary accommodation and social care.
Bromley council said it has already had "high level talks with senior civil servants" about exceeding the 5% cap.
