London’s National Economic Contribution

Ben Coleman Excerpts

Thursday 10th July 2025 Westminster Hall

[Ben Coleman (Chelsea and Fulham) (Lab)]

Does my hon. Friend recognise that London has the highest housing costs in the whole country and a quarter of Londoners live in poverty? Coming down the track towards London is the Government’s fair funding review, under which local authorities in London could lose up to £700 million in funding. This comes after hundreds of millions of pounds were cut from local councils under the Conservatives’ austerity programme. It could hit my boroughs of Hammersmith and Fulham, and Kensington and Chelsea, which we share, particularly hard. Does he agree that the Government’s funding review should measure deprivation after housing costs so that the level of deprivation in London is accurately captured?

[Joe Powell]

I thank my neighbour for his intervention. We all welcome a fair funding settlement that recognises the huge levels of regional inequality in this country, but it is correct and fair for it to be based on accurate and up-to-date data and for that data to include the very high proportion of Londoners’ incomes spent on housing, which pushes up the poverty numbers. We have some of the most deprived communities in the country, often hidden within quite wealthy boroughs, so we also need to capture the geographical areas of deprivation. I also suggest that the Government include the daytime population, because lots of commuters come in and use council services but are not necessarily captured in the census.

Temporary accommodation, as we know, costs London councils £4 million a day. Obviously, the long-term solution is to build the houses that we need, but in the short term we should not hit everyday services that people need on the back of that budget.