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Your weekly London local government update

14 Jan 26

London Councils Chair upbeat despite continuing challenges

Speaking to the Local Government Chronicle ( [link removed] ), who have been seeking the views of leading local government figures on their hopes and predictions for 2026, London Councils Chair Cllr Claire Holland OBE said she was "upbeat" about what 2026 will bring.

"London boroughs continue to face an array of challenges – especially in terms of housing and homelessness, and enormous strains on budgets", she said. "However, there is also a lot of progress being made, and positive changes underway."

"The government agreeing to let London introduce an overnight accommodation levy is an example of this. The coming months will be crucial as we seek to ensure the levy is designed to work for boroughs, businesses, and our residents.

"London Councils wants a fair portion of the levy revenue to be retained locally. This means those boroughs experiencing the most tourism would have more resources for managing the extra service pressures and supporting their local economy. The remaining funds should then be invested across the capital to support pan-London services and growth opportunities. We look forward to working with the government and Mayor of London on this agenda in 2026.

"But boroughs are ambitious for further fiscal devolution. Beyond the overnight levy, we hope to keep up momentum and see more powers and resources brought to the local level.

"This is as vital as ever for bolstering town hall finances and enabling us to sustain services, build homes, and generate the growth we all want to see in our communities."

Rent convergence 

The government is committed to re-introducing a policy of social rent convergence, acknowledging this as necessary for securing increased investment in new and existing social housing and facilitating delivery of its housing ambitions.

At the Autumn Budget, the government stated that it will announce details of its rent convergence policy – including the convergence rate – in January 2026.

In the face of a worsening crisis facing social housing finances in the capital London Councils is asking the government to enable a social rent convergence rate of at least £3 per week from April 2026.

London Councils has published a briefing setting out the key issues in the capital and why £3 per week is the only option that guarantees a better future for social housing in the capital, which you can read here ( [link removed] ).

London Government Dinner

The London Government Dinner – an annual gathering of London-wide leadership, hosted by the City of London - will take place tomorrow (Thursday) evening.

The Lady Mayor Dame Susan Langley; London Councils Chair Cllr Claire Holland OBE and Mayor of London Sir Sadiq Khan will all address the attendees.

Freedom Pass renewals

If you know someone with an Older Person's Freedom Pass expiring in March 2026, they don't need to do anything. If they are still eligible, they will receive a new pass this month.

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In the news this week...

McGovern: ‘Send crisis not just financial’
LGC ( [link removed] )
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LGA calls for ‘honest conversation about council tax’
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Inside Housing’s guide to what to look out for in 2026
Inside Housing ( [link removed] )
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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] ).

London Councils Committees

Leaders' Committee ( [link removed] )

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Executive Committee ( [link removed] )

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Transport & Environment Committee ( [link removed] )

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Transport & Environment Executive Committee ( [link removed] )

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Grants Committee ( [link removed] )

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Grants Executive Committee ( [link removed] )

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Follow our socials 

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

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

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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.
London Councils, 4th Floor, 12 Arthur Street, London, EC4R 9AB

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