Southwark Labour refuse to sign cross-party letter demanding real fairer funding

13 Nov 2025
Steve Reed

At last night’s (12th November) Council Assembly, Southwark Labour refused to join the Liberal Democrats in signing a letter to the Secretary of State Steve Reed, which demands that plans to implement cuts which would leave Southwark with a £90 million black hole be reversed. 

The Government’s so-called “Fair Funding” review is set to change the way that grants to local councils are allocated, using measures which will disproportionately leave inner-London much worse off. The Institute of Fiscal Studies has said that “London is the biggest loser” of the reforms.  

The measures will punish areas that have experienced higher than expected business growth, high housing costs, and high population density. 

The Liberal Democrats have said that whilst giving more cash to historically under-funded local authorities is the right thing to do, it should not come at the expense of London. 

The opposition party had also pointed out that these cuts are coming despite Southwark MP Miatta Fahnbulleh sitting as a minister in the department responsible. Government minister Alison McGovern, who sits in the same department, also used to be a Southwark Councillor. 

Earlier this week, Group Leader Cllr Victor Chamberlain met with Liberal Democrat’s Local Government Spokesperson Zöe Franklin MP to discuss the reforms, and hear how the Liberal Democrats are fighting in Parliament for real fair funding for all councils. 

Commenting, Liberal Democrat Group Leader Councillor Victor Chamberlain said:  

“The Labour Party are clearly desperate to blame anyone else for their own failures in government, but they need to realise that they are the ones in power now, and take some responsibility.  

Southwark Council is staring down the barrel of £90 million of cuts – that’s the equivilent of everything we spend on our roads, parks, leisure centres, and libraries in one year. This will lead to worse services and job losses in an area that has some of the highest levels of deprivation in the country. 

This is a political choice from this Labour Government. Liberal Democrats are prepared to stand up for Southwark residents, but Southwark Labour are happy to wave the white flag. 

We’ve had to send the letter without the Council Leader’s signature – and we urge the Secretary of State to listen to the communities his cuts will wreak havoc on” 

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