London councils will be the biggest losers under government plans to change funding, according to a report.

The Institute for Fiscal Studies found some London boroughs could see funding drop up to 12% once inflation is taken into account.

The changes will mean they will have less money to spend on services even if council taxes are increased.

Overall cash for inner London town halls would be 11 to 12 per cent lower in 2028/29 in real terms.

Sir Keir Starmer’s own council, Camden in north London, will be hit by the reforms when taking inflation into account, the IFS added.

The think tank said Camden, along with other inner London boroughs including Westminster, will have less money to spend on services even if they increase council tax by the maximum amount allowed.

Whitehall will pro

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