Key information
Publication type: General
Publication date:
Contents
Our report warns that Mayor Boris Johnson faces his toughest financial decisions yet as he sets next year’s budget for key services used by Londoners.
The Assembly’s Pre-Budget Report highlights the challenges the Greater London Authority (GLA) is facing as it looks for new ways of generating finances to make up for reductions in central funding. In his next budget, the Mayor faces important and difficult strategic decisions which will inevitably have consequences for Londoners.
Later this year the Mayor will announce how money is being allocated for police, fire, transport, economic development, housing and regeneration in the capital during 2012/13. The budget is the current Mayor’s fourth since taking office and the second since the Government’s Comprehensive Spending Review which heralded a four year cut in public spending to reduce the national deficit.
Watch a short video about the report findings:
The Budget and Performance Committee raises areas of particular concern the Mayor must address in his budget including:
- Substantial exceptional costs from the 2012 Olympics, including potential costs associated with the stadium after the Games and uncertainty around outstanding land liabilities.
- The bill - £190 million and rising –faced by police from August’s disturbances.
- The challenge for the police of finding the scale of savings required by cuts to its government grant.
- The potential effects of savings programmes on transport services.
- Reduced overall funding for economic development and housing.
- The transfer of HCA assets and liabilities to the GLA which is yet to be fully resolved.
The report calls for greater clarity on GLA long-term borrowing, given that capacity to borrow money to support Mayoral objectives may already have been reached, and sets out options for the Mayor around use of council tax revenues. The report also raises questions about the potential consequences of reallocating funding from fire services to bolster police resources.
Related documents
Pre-Budget 2011 FINAL.pdf