Inner London councils to lose funding as other cities gain, report says

The Institute for Fiscal Studies (IFS) reports that council funding changes will disadvantage inner London boroughs, with areas like Camden and Westminster facing up to a 12% decrease in funding after inflation adjustment. The revamp aims to balance funding in favor of outer London and other urban areas like Nottingham and Slough. The new system will redistribute around £2.1bn in annual government funds, benefiting 161 authorities but potentially harming 186, although exact impacts will be finalized later this year. This shake-up is critical to address the disparity between council funding and service demand, with inner London expected to see the most significant funding reductions.