Housing costs are sending councils ‘over the cliff’

London’s 33 local authorities are expected to overspend by more than £600 million this year. The London Councils group says more than a third will go towards housing more than 175,000 people currently living in temporary accommodation. As a result, boroughs are making cuts elsewhere. Havering, Enfield and Newham are in particularly poor financial health and all face budget gaps of between £20-32 million. Enfield Council is considering closing eight libraries, while Newham may cut funding for Christmas lights and remove free tea and coffee for office staff. “It’s the outer London boroughs that are falling over the cliff first,” Bromley councillor Colin Smith told the BBC. “Some have gone already,” he said, referring to Croydon’s bankruptcy four years ago. A total of 19 UK local authorities have requested “exceptional” financial support from the government this year. That includes a £1.2 billion bailout for Birmingham council.