Waltham Forest Council leader Paul Perkins has called on the government to give local councils more money. His appeal follows a budget that contained no extra funding for councils, though it did give households a £100 boost towards energy bills.
Before the budget, Cllr Perkins wrote to Chancellor John Healey. In the letter he said Waltham Forest has "for many years been underfunded in the face of ever rising demand for services" that support the borough's most vulnerable residents.
He said spending driven by those pressures now takes up more than three-quarters of the council's core budget. That budget, he added, is "less in real terms than it was in 2011."
Cllr Perkins also pointed to a gap with neighbouring boroughs: Waltham Forest receives £22 million less than Hackney for public health services.
Borrowing to balance the books
In April, the council borrowed £17 million in exceptional financial support (EFS) from the government to cover a £16 million budget shortfall. Cllr Perkins argued that "EFS is no longer exceptional". He said it is the only option left for councils that are well run but structurally underfunded.
Waltham Forest is not alone. Havering Council has borrowed nearly £250 million over three years, and Redbridge overspent by around £29 million last year.
Eamonn O'Brien, chair of the Local Government Association, said: "No overall funding increase for local government means councils will continue to struggle to meet demand."
Some relief for small businesses
There was better news for some local traders. The government raised the threshold for small business rates relief from £12,000 to £18,000.
Aceil Haddad, founder of Head to Ouna café in Chingford Green, welcomed the change. She said it gives small businesses "breathing space and greater confidence."
