Council services threatened by pensions deficit

PUBLIC services could be under threat because of a black hole in London's council pension fund, it emerged today.

An ageing population has led to a £210million deficit in the London Pensions Fund Authority. Now the Government has asked borough leaders for more cash despite the low levels of funding recently announced.

Council bosses say if they have to pay up, services such as waste collection and libraries may be hit. Instead they asked for more time and said City Hall should shoulder some of the cost.

The LPFA is one of the largest local government pension schemes with members from the former Greater London Council and the Inner London Education Authority.

Justine Greening, shadow minister for local government, said overspending at the GLC under Ken Livingstone was to blame. A City Hall spokesman said the Mayor wants the Government to wait until next year to allow for consultation.