More than 30 leading councillors from across London have written to the chancellor of the exchequer calling on him to reverse the 1% hike in borrowing through the Public Works Loan Board.

In the letter dated 1 November the 36 councillors, who included the mayor of Lewisham Damien Egan and Nesil Caliskan, leader of Enfield council, asked Sajid Javid “to reconsider reversing your decision, or to continue giving councils a borrowing rate of 1% above gilts if the money will be spent on housebuilding or regeneration projects”.