Commenting on Wednesday’s Autumn Budget, Antonia Jennings, CEO of Centre for London, said:

“Labour seems to be planning a three-pronged approach to fill the ‘£22 billion black hole’ in the country’s finances on Wednesday: generating revenue via tax increases; changing the fiscal rules around the country’s debt; and cutting funding to national government services.

Many of the proposed changes to taxation appear to be ‘wealth taxes’, which will impact those with the deepest pockets. It’s therefore unlikely that the average Londoner will be impacted by these changes – which is fortunate, given one in four in the capital live in poverty after paying their housing costs.

Another era of austerity would be devastating for the millions of Londoners already struggling. Investment into the public realm must be seen as other investments are; as upfront costs to produce rewards in the future. A healthier, safer and better-connected London will result in increased quality of life for Londoners and higher productivity levels for the city overall. Ensuring better outcomes for our citizens requires investment into the services that affect their lives.”

“Even with the rumoured funding increases, allocation of funds will be tight – and contentious. In a period where many departments are cash-strapped, the Treasury will need to make careful decisions about where cuts are made, and grants are provided. Here, it’s vital we see local authorities prioritised. The funding crisis for councils is no secret – London Councils highlight their own £700 billion black hole in their social housing finances.

For long-term stability of local authority funding, we recommend the government add a fourth prong to their financial strategy: fiscal devolution. Compared to other global cities like New York or Paris, London and other UK major cities have very little control over the funding they receive and how its managed. There are two levers which the government could pull to allow local councils to take control of their budgets: devolving control over property taxes to London government and trailing allocation of a portion of income tax to local and regional government. This would increase long-term funding, to ensure local government are empowered to meet the needs of the communities they exist to serve.”