Decision Maker:

Outcome: Recommendations Approved

Is Key Decision?: No

Is Callable In?: No

Date of Decision: September 24, 2025

Purpose:

Content: 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.