Your weekly update on London local government. Problems viewing this? [link removed] Add to safe sender.

Your weekly London local government update

24 Sep 25

Budget must address crisis in London's council housing finances

The upcoming Budget must be a “decisive moment” for fixing the crisis in London’s council housing finances and boosting investment in new social homes, boroughs have said.

London Councils’ analysis suggests that, due to the continuing squeeze on their resources, boroughs will be forced to make a real-terms reduction of £269m in spending on council housing repairs, management, and resident services over the next four years. 

Having welcomed the government’s commitment to reinstating a national policy of ‘rent convergence’ at the Autumn Budget – which would ensure residents in similar socially rented properties pay the same rent – the cross-party group is pushing for: A rent convergence rate of at least £3 per week, which will help bring social rents to a consistent level at a faster pace, and the introduction of a London Formula Rent Reset, giving boroughs extra flexibility over setting social rents to reflect London’s high property costs and higher maintenance costs, while ensuring affordability for tenants.

Cllr Grace Williams, London Councils’ Executive Member for Housing & Regeneration ( [link removed] ), said: “Boroughs are determined to build new council housing and to improve standards in existing homes. However, at a time when boroughs want to invest more, the squeeze on our housing resources mean we are instead in a state of managed decline, and we find ourselves forced to plan significant spending reductions.  

“The Budget must be a decisive moment for turning this around and fixing the crisis in council housing finances. The government is taking important steps to restore stability to the social housing sector, and the reintroduction of rent convergence will potentially bring a major boost.

“London faces the most severe housing pressures in the country, with one in 50 Londoners living in temporary accommodation and in need of a permanent home. We are keen to work with ministers in ensuring that a renewed approach to rent convergence is fair for tenants, puts council housing budgets in a healthier position, and enables the investment in standards and new social homes we all want to see.”

Liberal Democrat Conference

London Councils hosted a well-attended event at the Liberal Democrat conference in Bournemouth on Monday. 

The event, chaired by Richmond Leader and London Councils Vice Chair Cllr Gareth Roberts, saw the panel discuss how to make the best case for London, as well as setting out the financial and social challenges that our city faces. They highlighted the perception problem London faced nationally, with many outside the capital assuming it was wealthy and self-sufficient. 

The panel also included Bobby Dean MP, On London journalist Dave Hill, Hina Bokhari AM as well as London Council's Associate Director for Finance & Devolution Michael McVicker. The debate prompted a lively audience discussion, with attendees making points on devolution, the need for London to love itself and the cost of living in the capital.

London Councils will be hosting events at the upcoming Labour and Conservative party conferences. You can find more details about all our 2025 conference events here. ( [link removed] )

( [link removed] )

Bexley Leader announces plans to stand down in November

Bexley council Leader and London Councils Vice Chair Cllr Baroness Teresa O'Neill OBE has announced plans to stand down as Leader in November and will not be seeking re-election as a councillor in next May's London local elections.

Baroness O'Neill has served as a Bexley councillor since 1998 and been Leader of the council for 17 years. She has been London Councils Vice Chair for the past 15 years.

Announcing her decision, Baroness O'Neill said: "After more than 27 incredible years as a councillor – the last 17 as leader – I have made the very difficult decision not to stand for re-election in the May 2026 local elections. I was elevated to the House of Lords shortly after the election in 2022 but, having committed to a further four years at the election, I was determined to fulfil that commitment.

"I remain deeply committed to the borough and our residents, as indeed I am one, but it is now time for me to focus on my work as a Peer. I intend to continue fighting Bexley's corner in Parliament, which offers a platform for promoting the borough's interests nationally."

The Conservative Group of Council Members will choose her successor as Leader, which should be formally ratified at the next full council meeting on 5 November.

By-election result

A by-election took place in the LB Newham's Plaistow South ward last week (Thursday 28 September). The by-election was won by Md Nazrul Islam (Newham Independent Party). You can read the result in full here. ( [link removed] )

( [link removed] )

( [link removed] )

( [link removed] )

In the news this week...

Call for rent convergence to combat housing budget ‘decline’
LGC ( [link removed] )

Councils can't wait for reform
The MJ ( [link removed] )
( [link removed] )
( [link removed] )

MPs call for 'root and branch' transformation of 'broken' SEND system
The MJ ( [link removed] )
( [link removed] )
( [link removed] )

One of London's longest serving council leaders announces she's stepping down after 17 years
MyLondon ( [link removed] )

( [link removed] )
( [link removed] )

Caution urged on fair funding flexibilities
The MJ ( [link removed] )
( [link removed] )
( [link removed] )

Lime bikes chief executive reveals huge expansion vision: 'We want to be in every borough in London'
The Standard ( [link removed] )
( [link removed] )
( [link removed] )

( [link removed] )
What topics are you interested in? Click here to let us know ( [link removed] )

London Local Government 
Directory

You can find contact details for every councillor in London in our London Government Directory here ( [link removed] ).

Case studies in prevention

To celebrate 60 years of the London boroughs, each week, London Councils is sharing prevention case studies highlighting how preventative action by London boroughs is helping to save money and improve the lives of their residents.

This week, our case study is from the London Borough of Newham, where Family Hub Navigators are ensuring much needed support and advice is available to families from pre-birth until their children reach 18, or 25 if they have additional needs.

You can read  LB Newham's case study in full on our LinkedIn page here. ( [link removed] )

Follow our socials 

[link removed]
[link removed]
[link removed]

Comments or queries? Email the editor ( [email protected]?subject=Key%20Issues%3A )

( [link removed] )

( [link removed] )
visit londoncouncils.gov.uk ( [link removed] )

( [link removed] )

London Councils is the collective of local government in London, the 32 boroughs and the City of London.
We also run pan-London services like Freedom Pass and Taxicard.
London Councils, 4th Floor, 12 Arthur Street, London, EC4R 9AB

| [email protected] ( [email protected] )

Unsubscribe from this newsletter [link removed]