Pre-Budget report 2009
The Budget and Performance Committee's Pre-Budget report warns the financial prospects for the capital’s economic development body – the London Development Agency – are 'bleak'. It says the recently identified £159 million shortfall in the LDA’s Olympic Land commitments has both damaged the Agency’s reputation and significantly reduced its resources. The report reveals that the shortfall and expected cuts in government grants mean the LDA will lose more than a fifth of the resources it expected for 2010/11 and by 2012/13 it is likely to have only around 60 per cent of the programme budget available to it last year.
The report warns that from 2011/12 onwards the pressure on all GLA functional bodies will increase. Reductions in government grant are expected, but there is significant uncertainty about the scale and timing of these cuts. The Committee warns that the Mayor will need to balance his desire to limit the financial burden on London council taxpayers with his priority to maintain frontline services – particularly in the police and fire services. It calls on him to make the case for London to central government to try to ensure that vital services in the capital continue to be funded adequately.
As part of its examination of the issues facing the functional bodies’ finances, the Committee notes that the challenges facing Transport for London (TfL) from the recession may be even greater than previously thought.
Read the report below:
Mayor's Response: Mayor's Response - PDF