Councillor Leaf emphasized that Bexley has been underfunded by central government for years, and the current settlement fails to address the borough’s needs adequately
The London Borough of Bexley has issued a strong call for “a fairer share” of centrally provided funding in its response to the Government’s provisional Local Government Finance Settlement consultation for 2025 to 2026. The Council’s response highlights growing concerns about the disparity between funding allocations and the increasing pressures faced by outer London boroughs like Bexley.
Bexley’s population is growing, and the borough is experiencing a shift in challenges typically associated with inner London. These include rising demands on social care services, housing, and transport, alongside the strain of high inflation. However, the funding provided by central government has not kept pace with these mounting pressures, according to the Council.
Deputy Leader of the Council and Cabinet Member for Resources, Councillor David Leaf, expressed disappointment over the proposed settlement. He stated, “It is disappointing that the settlement includes a reduction in the share of national funding that Bexley will receive. We could do so much more for our residents if we had a fairer share. As a London borough, we continue to be significantly impacted by high inflation, increasing levels of demand, specifically for Adult and Children’s Social Care, SEN transport, and Housing, but also other demand-led services such as Parking and Waste services.”
Councillor Leaf emphasized that Bexley has been underfunded by central government for years, and the current settlement fails to address the borough’s needs adequately. He pointed out that the grants and resources allocated do not reflect the demands placed on the Council, nor the costs of fulfilling statutory and new government-imposed responsibilities.
A particular area of concern highlighted in the response is the inadequate provisions made for cost pressures stemming from increased employers’ National Insurance contributions. “The provisions set aside for the cost pressures caused by the Government’s decision to significantly increase the costs of employers’ National Insurance Contributions are woefully inadequate to cover the combined direct costs—and contractual or third-party costs—the Council will face,” said Councillor Leaf. He added that additional measures in the Employment Rights Bill would also impose significant costs, which the Government has not committed to fully covering. “This will undoubtedly have a negative impact on services and cause valuable resources to be taken from elsewhere,” he warned.
The Council also acknowledged the increase in the Social Care grant but argued that it remains insufficient to meet the growing pressures in this area. Housing-related support and other social care responsibilities are also underfunded, according to the Council’s analysis. Furthermore, the consultation response raises concerns about potential future changes to local government spending formulas, which could further disadvantage Bexley.
Councillor Leaf expressed frustration over the long-standing funding disparities. “There continues to be a disparity between what Bexley receives compared to our neighbours from central funds, despite sharing some similar issues and pressures,” he said. He also noted that reforms made in the mid-2000s by the then Government have left Bexley “hugely short-changed,” an issue that remains unresolved.
While the Council supported the proposed approach to distributing the Revenue Support Grant, including the elimination of negative Revenue Support Grant, it underscored the need for broader reforms in funding distribution formulas. The current allocation system, according to the Council, does not reflect the realities faced by boroughs like Bexley.
The consultation has now closed, and Bexley’s response will be included in the papers to be discussed at the Public Cabinet meeting on January 23. The Council hopes its detailed response will prompt the Government to reconsider the funding formulas and provide a fairer allocation to ensure that boroughs like Bexley can continue to deliver essential services effectively.
