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Chancellor urged to take action over London population figures

Monday, 8 October 2007

London's government leaders have warned the Chancellor that it is essential their concerns are addressed before October's Comprehensive Spending Review (CSR) and the first three-year local government finance settlement which will fix council funding until 2010/11.
       
The warning comes as latest figures from ONS reduce the capital's population projection for 2007 by 95,000. Population figures are important to local authorities because they are used to determine the amount of funding they receive from government.  If these figures are used to determine funding levels through CSR, there could be dire consequences for the capital's public services.

The sudden reduction came about because ONS decided to change the way it calculates international migration in population statistics.

If ONS continues with this changed method, it will result in a 140,000 reduction in London's population projection for 2010 - equivalent to the entire population of Kingston upon Thames going missing.

Councillor Merrick Cockell, chairman of London Councils, said:
"As a truly global city, London attracts migrants from across the UK and the rest of the world - and this is something to be welcomed. Migration will always be a sensitive issue; to ensure public support, it is vital that the lasting benefits international migration brings far outweigh the increased pressure it places on our public services. But the ONS' failure to properly measure the capital's population means that London's council taxpayers are shouldering all the costs, but receiving little of the benefits.

He added:

"The government needs to address this problem, or else public support for international migration will evaporate - with serious consequences for community cohesion in London. It is essential that London's public services are properly funded to support new migrants as well as long-standing residents - and we implore the Chancellor to address this problem before both CSR 2007 and the first three-year settlement are announced."