Four London councils challenge funding reforms

Four London council leaders have formally submitted a challenge to government reforms that are set to see their central funding slashed by up to 58%.

The leaders of Wandsworth, Richmond, Westminster and Kensington and Chelsea councils delivered revised funding proposals to the Treasury on Thursday urging the government to rethink its overhaul of local authority funding rules.

Among those councils, the leaders said the reforms would result in funding cuts ranging from 40% to 58% by 2029.

The government said the "outdated" local authority funding model was being reformed to ensure "money goes where it is most needed".

The changes, known as the Fair Funding Review 2.0, aim to shift more cash towards areas with higher deprivation.

Wandsworth's Conservative administration said the reforms would cut funding by 40% and force it to slash services and raise council tax.

The authority is proposing to raise council tax by 94% from April, in addition to making sweeping cuts – including shutting its cost-of-living reserve with £6.2m of unspent funds, replacing Labour's Access for All with a much smaller concessionary scheme, cancelling its Borough of Sanctuary status and suspending voluntary sector grants for four years.

Kensington and Chelsea is set to lose £108m, or more than 40% of its central funding over the next four years under the reforms, while Westminster is due to see these resources drop by around £100m (46%). Richmond is set to be stripped of £26m (58%) of its core funding.

The councils have now formally submitted their revised funding proposals, under the Sustainable Communities Act, asking the government to reconsider its decision.

Wandsworth Council leader Robert Morritt, who heads a Conservative minority administration, said: "Residents should not have to pick up the bill for changes imposed by Whitehall. This proposal takes our case directly to government.

"We are using every route available to fight for a fairer deal and protect Wandsworth taxpayers."

Lib Dem Richmond council leader Gareth Roberts said the cuts risked "pushing this council towards a financial cliff edge".

He said: "We will not stand by while Whitehall forces our residents to pay the price for a deeply flawed formula."

Tory Kensington and Chelsea council leader Elizabeth Campbell said: "I will use every tool at my disposal to fight these cuts, stand up for our residents and secure the fair deal our borough deserves."

A Ministry of Housing, Communities and Local Government spokesperson previously said: "We have consulted extensively on reforming the outdated council funding system to ensure money goes where it is most needed, following on from a longstanding consensus.

"We're also protecting councils through transitional arrangements so no area faces a cliff edge."

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