Executive summary
This paper examines local government structures in London, focusing on whether they deliver value for taxpayers and residents, as well as if it can be improved. It makes the following key findings:
- There are inequalities in political representation between London and other major UK cities.
- Bringing political representation in line with other urban areas in the UK could result in savings of over £12 million a year in councillor allowances and increase the authority of councillors.
- Spending on council staff is substantial with functions often duplicated across London councils.
- Boroughs have addressed this through partnerships and shared staffing arrangements which have resulted in cost savings.
- Expanding these partnerships across London could result in a lower staff to population ratio and cost savings of up to £51 million in senior staff remuneration and £1.1 billion in salaries more generally.
- Partnerships and arrangements are vulnerable to policy and political divergence and thus need to be accompanied by political consolidation.
- The present system of local government in London is based on outdated assumptions from six decades ago that constrain how boroughs operate.
- Other municipalities outside of the UK demonstrate that true political autonomy requires scale to justify its existence.
- Larger boroughs would enhance local authorities’ power and independence, allowing experimentation and creating greater political diversity and choice for Londoners.
This paper recommends the administrative and political consolidation of boroughs into larger units. This would entail:
- A reduction in the number of boroughs from 32 to 16, with a population of approximately 500,000 residents each.
- This should be accompanied by appropriately sized political and bureaucratic leadership structures including fewer councillors and senior staff.
- Where staffing efficiencies can be achieved without sacrificing service delivery, this would also mean fewer staff.
Reform of London local government would not be unprecedented but be an extension of existing partnerships and principles. Even so, it will be a complex and lengthy process shaped by the input of a host of stakeholders.
Yet the fundamental goals of reform should not change – namely delivering value for taxpayers and residents. While council mergers provide opportunity for efficiencies, they are not guaranteed. Ultimately, political will and good governance are necessary for any reform of London local government to succeed.