London Councils has responded to a recent report from the Institute for Fiscal Studies (IFS) on levels of public spending in areas across England.

The IFS report, published on the 15th August 2023, suggested that in the year 2022-2023 more than £245 billion was spent on delivering five key public services across England: the NHS, schools, local government, the police and public health. 

The IFS website states that funding was used to deliver services to people in specific places and the scale of this spending and the important contribution these public services can make to individuals' life chances make it vital that funding for public services is allocated in an effective and fair manner.

The report finds that overall, London receives the highest total place-based funding, £4,734 per head, 9.9% above the national average, however, this is 17% lower than its estimated relative need.

This is the largest gap of any region in England.

London Councils is the cross party organisation that represents the interests of the 32 London boroughs, the City of London Corporation, The London Fire and Emergency Planning Authority, and the Mayor's Office of Policing and Crime.

They act as a collective voice for the boroughs and these organisations and advocate for them at regional, national, and international levels.

Councillor Claire Holland, London Councils' Executive Member for Communities said: "London has some of the worst deprivation in the country. As the 2021 census showed, over the last decade outer London in particular has become more deprived, reflecting demographic and economic changes. Since funding was last updated, London's total population has grown by almost 800,000 – broadly equivalent to a city the size of Leeds."

She added: "But, as the report highlights, local government funding has not changed to reflect these fast-rising pressures and growing levels of need.

"With funding levels still almost a fifth below where they were in 2010, local government funding reform must take place alongside vital investment across the entire sector to put council finances back on a sustainable path for the long term."

"We remain committed to working with the government to ensure this happens."

Read the full IFS report here.