A prominent Labour MP has linked the cost of living crisis with the increasing number of school closures and mergers happening across London.
Florence Eshalomi, who is being spoken about as a potential candidate to succeed Sir Sadiq Khan as mayor of London, said many families were being forced to leave the capital because they were no longer able to pay their rent.
She said this was especially the case for those on housing benefit, which has failed to keep track with hikes in private sector rent.
The Standard has revealed that schools are closing or merging in Lambeth, Islington, Newham and Hackney as boroughs battle with plummeting pupil numbers.
Addressing a set-piece meeting at City Hall on Tuesday, Ms Eshalomi said London was the “centre of the housing crisis” and warned: “The cost of living is driving families literally out of London.”
She pointed to a recent Parliamentary report from the select committee that she chairs, which found that a family seeking council housing in Camden had been offered a home in Manchester.
The report – by the Commons housing, communities and local government committee – also highlighted reports that Enfield council was considering buying properties in Liverpool to use as temporary accommodation “due to a shortage of affordable accommodation in the borough”.
Ms Eshalomi made her comments as she gave the keynote address to the annual meeting of the London Assembly, which is celebrating its 25th anniversary year of holding the mayor to account.
An honour to deliver the keynote speech at the London Assembly 25th Anniversary AGM Meeting.
— Florence Eshalomi MP (@FloEshalomi) May 6, 2025
The GLA plays a crucial role in scrutinising the work of the Mayor & its functional bodies, working cross party in the interest of our great city.
London is the city of the world 🌎 pic.twitter.com/dJMijrJOSq
She said: “There is often this assumption that London is fine, that London doesn’t need investment. We all know that this is really wrong. Our city faces many challenges on many fronts.
“It’s the centre of the housing crisis. Levels of crime remain too high. Far too many communities in London feel left behind by persistent inequalities.
“Local government finances are stretched – to some at breaking point. And the cost of living is driving families literally out of London, where we are seeing our schools close, including many in my constituency.”
Ms Eshalomi, the MP for Vauxhall and Camberwell Green, was a member of the assembly between 2016 and 2021.
Last week she said the first 10 months of the new Labour Government had effectively been a “year that we’ve lost” for housebuilding in the capital.
Her willingness to speak out on matters of concern to Londoners is likely to fuel rumours about her willingness to succeed Sir Sadiq, should he choose not to contest the 2028 mayoral election.
Referring to the 25th anniversary of the establishment of the Greater London Authority, Ms Eshalomi said that the time of its formation, never did she – “a working class girl from Brixton” - imagine that she would become a Lambeth councillor and then an assembly member.
Ms Eshalomi, who is also the co-chair of the All Party Parliamentary Groups (APPGs) on London and on HIV and sexual health, spoke to The Standard about her concerns about the impact of the cost of living crisis, especially on lower income families.
She said the failure to increase the amount that Londoners can claim in housing benefits – to ensure benefits keep track with rising private sector rent - had led directly to many being forced from the capital.
She also criticised the rules used by the Government to calculate how much each school receives to cover its running costs.
“The funding formula is unfair, but the main reason families are moving out is the cost of living,” she said. “Families cannot afford to live in London.”
Ms Eshalomi and fellow London MPs Sir Bob Neill and Munira Wilson have raised their concerns with education minister Sir Nick Gibb.
The assembly’s annual meeting also saw the outgoing chair hit back at suggestions that the capital’s 33 borough councils should “share power” with the mayor – a move that could potentially herald the demise of the assembly.
Andrew Boff, a longstanding Tory assembly member, said that borough councillors should not be given “add-ons” to their existing duties, saying that any such move would result in “sadly deficient” scrutiny of the mayor.
Mr Boff said: “Local government is being revised throughout the country.
“But I must say I believe the model of metro mayors is sadly deficient in terms of their scrutiny and accountability, because they have no assemblies like [London’s].
“Being held to account by people who have a mandate to do so, rather than as add-ons to a councillor’s existing responsibilities, is vital to the functioning of the Greater London Authority.”
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