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Key Issues from London Councils

Your weekly London local government update

26 Nov 25

Fair Funding Review 2.0 offers 'long overdue reforms'

Responding to the government’s statement on the Fair Funding Review 2.0, Cllr Claire Holland, Chair of London Councils, said: “Given the scale of the financial challenge facing London boroughs, these long-overdue reforms to local government funding will be hugely significant for the future of the capital.


“From the outset, we have supported the government’s aim of creating a system that better matches resource to need. We therefore welcome the decision to use updated deprivation measures that factor in housing costs – this is a far more accurate approach to measuring deprivation. Housing costs are undeniably a key determinant of deprivation – not just in London, but across the country – which in turn drives high levels of demand for council services.


“Considering the rapid spending increases in service areas such as temporary accommodation provision, we are also pleased to see the most up-to-date council spending data will be used to determine funding allocations.


“We remain concerned that the new relative needs formula for Children and Young People’s Services continues to dramatically underestimate levels of need in London, despite some minor adjustments. It is vital the government keeps this untested model under review and monitors its ability to accurately measure demand.


“We will be working through [the] announcement in more detail to understand the full implications for boroughs, ahead of provisional funding allocations being published in December.


“After more than a decade of structural underfunding, rising costs and growing demand, we know many London boroughs will continue to face huge financial pressures and are likely to require emergency borrowing. The government must keep working with councils so we can restore stability to budgets, help drive growth, and deliver vital local services.”


Later today, the Chancellor, Rachel Reeves, will deliver the 2025 Autumn Budget. You can watch the Budget live on the Parliament website here. London Councils will be updating members and responding to the main implications for London local government following the announcement.

London Councils urges government to act on surge in illegal e-bikes and unsafe batteries

London Councils is urging the government to introduce urgent secondary legislation to crack down on the growing sale of unsafe e-bikes, conversion kits, and uncertified lithium-ion batteries.


London Councils’ Executive Member for Transport and Environment, Mayor Brenda Dacres OBE, said: “We want Londoners to feel confident that when they buy or use an e-bike, it’s safe for them and for everyone around them. But right now, we’re seeing unsafe, illegally modified e-bikes and batteries sold online. This is putting Londoners lives at risk, and that simply must change. We need better oversight.

 

“Boroughs are doing everything they can to raise awareness, but we need further legislation on e-bikes in order to keep residents safe. There’s no doubt that e-bikes are part of London’s green future, and we will continue to champion the growth of safe and legal e-bike ridership across the capital.”

Climate Budgeting 

London Councils, with support from the GLA, is working with 26 boroughs to explore the benefits of climate budgeting - a structured approach to identifying funding needed for climate projects in line with an authority's own targets, and addressing gaps that could hinder progress toward them.


We’ve published a short paper featuring climate budgeting case studies from Lewisham, Islington, and Westminster, which you can read here.

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 City of Westminster where the council's Superzone project has helped tackle health inequalities in the area by supporting families in choosing active travel and increasing access to green spaces that are suitable for all children’s needs.


You can read the case study in full on our LinkedIn page and all of our prevention case studies here.

Freedom Pass expiring on 31 March 2026?

This year, Older Person's Freedom passes are being auto-renewed. You do not need to do anything.


You will receive your new pass by January 2026. Once your new card arrives, you can start using it immediately and can destroy your old one.

  

If you have any questions about the Freedom Pass renewal, visit our website here.

In the news this week...

Rough sleepers offered shelter as temperatures drop

BBC News

London Councils urges government to act on illegal e-bikes and unsafe batteries

TransportXtra

Building balance: The case for £3-a-week rent convergence

The MJ

Hopes for tourism tax in the Budget

LGC

We have an exciting opportunity for a PMO Manager to join our Warmer Homes London team, to support the governance and management of our London-wide retrofit programmes.


The role’s primary focus will be to support London’s Strategic Partnership of 27 members, delivering a £78 million grant over three years through the Warm Homes: Social Housing Fund Wave 3. If you or someone you know is passionate about successful partnership working, climate action, and ensuring all Londoners have safe, healthy and affordable to heat homes, click below to learn more.


Find out more about the role and apply here.


The deadline for applications is 1 December

London Local Government 

Directory

You can find contact details for every councillor in London in our London Government Directory here.

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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.

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