The council is urging an end to what it describes as the “unfair distribution” of centrally provided funds and has called for significant changes to ensure that funding reflects the borough’s growing needs and challenges.
The London Borough of Bexley has outlined a strong case for reform in its response to the Government’s technical consultation on local authority funding. The council is urging an end to what it describes as the “unfair distribution” of centrally provided funds and has called for significant changes to ensure that funding reflects the borough’s growing needs and challenges.
Bexley is demanding multi-year financial settlements to enable better long-term planning, the use of up-to-date data to determine funding allocations, financial support for preventive services that require time to deliver results, and improved transparency in funding decisions. The council has also criticised the over-reliance on council tax as a primary funding mechanism and is pushing for clarity on how funding reforms will impact local authorities like itself.
The consultation, titled “Local Authority Funding Reform: Objectives and Principles,” has been welcomed by Bexley as a long-overdue opportunity to address disparities in the current funding system. However, the borough made it clear that no authority should be left worse off as a result of the proposed changes.
“Bexley continues to be significantly impacted by increasing levels of demand for Adult and Children Social Care, SEN transport and Housing, as well as services such as Parking and Waste services.”
David Leaf, Deputy Leader
Deputy Leader of the Council and Cabinet Member for Resources, Cllr David Leaf, spoke passionately about the challenges facing Bexley and the urgent need for reform. “Bexley is home to 250,000 people, and that number is growing,” he said. “We are increasingly diverse, with a significant number of veteran residents. At the same time, demand for our services is rising, yet the funding to meet those needs has been squeezed.
“In the 2025/26 funding settlement, this government has cut our share of national funding for councils. We are fighting hard to get a fairer share of resources to support our residents. Despite sharing many of the same challenges as neighbouring areas, we receive less funding, and this disparity is unacceptable.”
The borough is grappling with increasing demand for adult and children’s social care, SEN transport, housing, and core services such as waste collection and parking. Compounding the pressure are rising costs driven by higher inflation and increased National Insurance contributions for employers. Cllr Leaf highlighted the government’s failure to adequately address these growing costs and burdens, stating that funding has not kept pace with the borough’s needs.
Bexley is particularly frustrated by the lack of access to the Recovery Grant and other funding streams provided to some councils but not others. “The current funding system favours certain parts of London and the country over others,” said Cllr Leaf. “We’ve lived within our means, but we need the government to listen and engage with us rather than showing favouritism elsewhere.”
Despite these challenges, Bexley has much to celebrate. The borough boasts high employment rates, an active community and voluntary sector, and some of the best recycling figures in London. It is also among the safest boroughs in the capital and is proud of its family-friendly environment and beautiful green spaces.
“We’re proud of what we’ve achieved, but we could do so much more for our residents if we received our fair share of funding,” added Cllr Leaf. “The government must act now to ensure that councils like Bexley are not left behind.”
In its consultation response, Bexley has called for a funding system that reflects the real costs of service delivery and considers the differences in demand across local authorities. It also emphasised the importance of using up-to-date data for funding decisions, as relying on outdated sources, such as the 2019 Census, does not accurately represent current needs.
The council also raised concerns about the reduction in grants such as the New Homes Bonus and the removal of new burdens funding, which it says create uncertainty and make it harder to plan effectively. Bexley argued for the removal of ring-fencing from grants to give councils greater flexibility in how they allocate resources.
The council reiterated its call for transparency in the funding process, ensuring changes can be scrutinised by stakeholders and residents alike. It also urged the government to provide funding for prevention services, which take longer to deliver measurable outcomes but have a significant long-term impact on communities.
The consultation closed on 12 February 2025, with Bexley’s full response available by contacting communications@bexley.gov.uk. The council remains hopeful that the government will take meaningful steps to address the inequalities in the current funding system and deliver a fairer, more sustainable finance model for local authorities.
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