The London Finance Commission – Inclusion London’s evidence

The London Finance Commission is the body set up to help the Mayor and London’s local authorities improve the tax and public spending arrangements for London in order to promote jobs, growth and greater equality.

Read our evidence to the London Finance Commission consultation here:

Inclusion London Response to the London Finance Commission Consultation 2016

Inclusion London raised the following concerns:

• Falling revenues during economic downturns
• The actual costs of services the government will pass to the Greater London Authority (GLA) differing from current levels of funding;
• The possibility that a postcode lottery of services will develop or increase.

Inclusion London is concerned that the revenues from business rates can fall as well as rise and may not cover the costs of services, especially when the population is increasing and ageing

While the government has said that it will protect local authorities from significant reductions in their income a  written commitment to continue to plug funding gaps into the long term future is needed, otherwise central government could declare that local government needs to become fully ‘self-sufficient’ and cut this funding, leaving local services underfunded.

Underfunded local authorities

Another concern is that the settlement between GLA and Central government will be based on inadequate funding levels currently provided by central government:

A local government report found that there is a funding gap of £6 billion by 2016/17 just to maintain the same level of service councils provided in 2014/15. If the trajectory of cuts continues the funding gap for councils would grow to £10.8 billion by 2019/20.

The funding gap is having a disastrous impact on services such as adult social care and support used by Disabled people.  A clean and feed model of care has developed, which ignores Disabled People’s rights under Article 19 of the UN Convention on Rights of Persons with Disabilities (UNCRPD).

We are concerned that the underfunding will become entrenched in a new system if responsibilities are passed to the GLA.

Postcode lottery

Currently there can be a postcode lottery in the level and quality of adult social are and support, particularly for former Independent Living Fund (ILF) users.

We are concerned that postcode lotteries will develop across the country as more services are devolved, so for instance, public health provision could differ from region to region, which could impact detrimentally on health and wellbeing.