Local government in London has slammed the Government for failing to include population figures on its new consultation for calculating the formula grant.

The Department for Communities and Local Government launched the consultation last week, and it closes on 10 October.

The consultation covers all councils in England which receive formula grant. Westminster City Council deputy leader, Colin Barrow, said councils were concerned that population numbers were not included in the consultation. Cllr Barrow was also concerned about changes to the social services formula for children and young adults, which meant that under government rules, people living in flats could not be used in determining how many poor people lived in the borough.

‘What we face is a cut of something like £25m in funding,' he told The MJ. ‘We are making a big fuss. This is one of those examples where there's the stroke of a pen in Whitehall and millions of pounds go straight out of the London boroughs.'

London Councils warned that more reliable methods to record international migration in the capital were needed.

The organisation also claimed that London boroughs were missing out on other grants because of high staffing costs in the capital.

A DCLG spokesman said population statistics were a matter for the Office for National Statistics.

‘Our aim must be to make grant distribution fair for everyone while preserving year-on-year stability so that councils can plan ahead on how best to meet their priorities,' said local government minister, John Healey. ‘It is only that we consult widely with local government and other interested parties to explore possible ways of updating and fine-tuning the formulae.'

A copy of the consultation document can be found online at www.communities.gov.uk/index.asp?id=1511901.