"It has always been shocking that the cost of housing in London was left out of the Government's fair funding formula. If the rumours are true and ministers are listening, then I hope that means a brighter financial forecast. Reflecting the true cost of housing and the impact of daytime visitors in the capital would be a good start, but for now this is rumour."
"Housing costs, which make up a small proportion of the overall deprivation score at present, will be a larger role in calculating how much money an authority receives. Since the cost of housing in London is significantly higher than the rest of the country, with the average property price-to-earnings ratio being about 1.5 times the UK average, this will make the capital appear more deprived and thus generate more funding"
Proposals to redistribute £2 billion of town hall funding toward more deprived areas were expected to hit London hardest. Negotiations have moderated the impact on London by increasing the role of housing costs in the funding formula. A higher housing-cost weighting will make London appear more deprived because average property price-to-earnings ratios are about 1.5 times the UK average, which should generate more funding for the capital. Kensington and Chelsea faces an £82 million funding gap over the next four years amid uncertainty ahead of official financial settlements in December. Concerns remain over potential increases to the Mayor of London tax precept for the Metropolitan Police.
Read at www.standard.co.uk
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