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This Council
notes:  
 

That since 2010, due
to previous Conservative governments, Greenwich Council has
suffered £150 million in cuts from central government and a
53% cut in our core grant funding creating substantial pressures on
our ability to provide frontline services to
residents.  

 

That due to surging
demand for our services and demographic changes, we face an
estimated £45 million gap in funding for the financial year
of 25/26 that will require tough decisions to ensure a balanced
budget. 

That previous
Conservative government policies systematically compelled councils
to sell community assets with an IPPR report estimating that during
their governance, 75,000 council assets worth circa £15
billion were sold since 2010 with an average of 6000 council assets
disposed of every year. 

 

That sustained cuts
to Revenue Support Grants under previous Conservative governments
made asset sales a financial necessity rather than a choice for
councils across the country.  

 

That the Leader of
the Council has written to the former Deputy Prime Minister, the
Secretaries of State for Education and Minister for Women and
Equalities and for Housing, Communities and Local Government and
the Parliamentary Under-Secretary of State for Minister for
Children and Families to lobby for changes to the proposed funding
formula review. 

 

That it’s
estimated that London contributes £32.5 billion more in taxes
than it receives back, with only 7% of tax revenues returned
through local authorities funding - the lowest proportion of any
major international city (31% in New York, 25% in Berlin, and 17%
in Paris).   

 

That London boroughs
already face significant financial pressures and funding reductions
and that London councils are more reliant on emergency borrowing
and prudent asset sales to balance their budgets than any other
part of the country. 

 

That nearly a quarter
of London Boroughs’ are currently receiving Exceptional
Financial Support, the highest rate of any region in
England.  

 

That the ONS Family
Spending in the UK survey shows Londoners spend 27% of their
average weekly household bills on rents and mortgages, compared to
an average of just 17% across the rest of
England.  

 

That once housing
costs are factored in, London has the highest rate of poverty of
any region in the country, with one-in-four households living in
poverty. 

 
 
This Council
believes: 
 

That while Greenwich
has maintained a record of responsible financial governance and
balanced budgets, additional devolved revenue mechanisms like a
Tourism levy are needed to help ensure we can deliver frontline
services in response to changing demographics, and surging
demand.  

 

That tough financial
decisions will need to be made by Greenwich Council in terms of
efficiency savings and prudent asset disposals to ensure that the
Council remains solvent and frontline services for residents are
protected and available. 

 

That any deprivation
measures used in funding formulae changes should calculate income
after housing costs and be updated to reflect the impact of housing
affordability and homelessness as drivers of deprivation in London
Boroughs. That any deprivation measure used in funding formulae
should calculate income after housing costs. 

 

That the proposed new
children’s funding formula creates challenges for Greenwich
Council and that it will have the largest impact on London
Boroughs’ funding share.  

 

That any potential
future review of the council tax system should consider the
introduction of higher council tax bands beyond Band H to better
reflect the value of multimillion pound homes. 

 
This council
resolves: 
 

To continue to lobby
for changes to the proposed funding formula to ensure that
Greenwich gets the resources it needs to provide every day high
quality frontline services for residents. 

 

To continue to update
residents, members and Greenwich Council staff on the financial
condition of the council through quarterly financial
reports. 

 

To advocate for
expanded devolved powers and innovative revenue-raising mechanisms
that protect working families from additional financial burdens
while addressing the funding challenges facing local government
authorities.