Councils in London are grappling with a substantial financial gap of £600 million amidst a deepening "homelessness crisis" in the city, according to London Councils, representing the

32 borough councils. The body has urged the government to consider a minimum 9% funding increase in the Autumn Statement to address this shortfall.

The collective overspending of these councils has surged by 50% due to heightened expenditure between June and September, largely attributed to the exacerbating homelessness issue in London. This plea for increased funding aligns with last year's Autumn Statement and also entails investing in homelessness initiatives while reforming the currently challenged local government finance system.

Acting Chair of London Councils, Councillor Claire Holland, highlighted the severe strain on homelessness services, which she deemed unsustainable. With roughly one in 50 Londoners currently facing homelessness, the city's services in this area are confronting a staggering £150 million overspend.

London's local authorities are under immense pressure, with Croydon Council having declared bankruptcy and Havering Council projecting potential bankruptcy within six months. Despite significant debts, Enfield Council expressed confidence in its financial stability.

London Councils emphasized that despite a substantial increase in the city's population since 2010, resources available to boroughs remain significantly lower than they were 13 years ago.

In response, a government spokesperson underscored an increase in Core Spending Power for London Boroughs, totaling up to £8.757 billion in 2023-24. The government aims to curb homelessness by allocating £350 million to London councils through the Homelessness Prevention Grant to assist those at risk in accessing the private rented sector. Photo by Dr Neil Clifton, Wikimedia commons.