Labour calls for reform as figures show £4m spent on independent schools and hundreds of thousands on luxury dining and alcohol

The secretive local authority that runs London’s Square Mile has come under fire for “lavish” spending – including subsidising its own members’ club and supporting a trio of private schools – at a time when funding for vital public services has been slashed.

The Labour party said the City of London Corporation was now in “desperate need of reform” after figures obtained by the Observer detailed spending on a luxurious dining club and bar, grace-and-favour accommodation and multimillion-pound support for elite schools.

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