uk/local/richmond-upon-thames/richmond/">Richmond Council is challenging Government funding reforms which it says could leave the borough £102 million worse off over four years, while pursuing its own savings programme to manage financial pressure and protect public services.
The Government says its Fair Funding Review 2.0 is designed to distribute money more fairly according to councils’ needs and the cost of delivering services. Richmond argues that the proposed changes would disproportionately affect the borough, reducing its annual core funding by £29 million by 2028/29, which is around 58% of its current allocation.
On 16 September, Richmond launched a public consultation asking residents to support its campaign against the proposed changes. The council called on ministers to reconsider the funding allocations, allow councils a longer period for transition as outlined in previous reviews and to be allocated a greater share of locally generated income.
Richmond is also trying to reduce its own costs. At a Finance, Policy and Resources Committee meeting on 24 September, councillors approved the scope of its Transformation Programme, which aims to deliver £39 million in annual savings by its fourth year. The plans cover adult social care, children’s services, housing, council operations and environmental services. The intention is to reduce costs while protecting important services through changes like preventative works and further technological integration. The committee consequently approved a further £18 million from the reserves to help fund the changes needed to deliver the programme.
On 25 September, the council published a warning that its financial reserves, which cover financial risks and unexpected costs, could run out within the next few years as it forecast a fall from £52 million at the start of the 2026/27 financial year to £28 million by the end of it. The council also projected a budget gap of £19.3 million in 2027/28, rising to £30.8 million by 2030/31, even if the Government allowed the maximum council tax increase, calculated at a 4.99% rise.
A separate review of the council’s investment plans discussed at the committee meeting showed a revised six-year capital programme worth £233.9 million, with a potential borrowing requirement of £124.7 million. Approved projects are to be reviewed to ensure they remain affordable, with priority given to investment that could generate annual savings.
On 6 October, councillors passed a motion calling on the Government to rethink the funding reforms. The council reported the decision on 7 October, and the public consultation closed on 14 October.
On 22 October, Richmond formally submitted proposals to ministers alongside Wandsworth, Westminster and Kensington and Chelsea. The council recorded that more than 2,200 residents had responded to the consultation, with over 95% supporting action under the Sustainable Communities Act which allows councils to directly challenge policies that impair the improvement of the the social, economic and environmental wellbeing state of its constituents.
Richmond reports it has delivered almost £60 million in annual savings since 2018, but argues that solely implementing further efficiencies may not be enough to absorb the proposed funding reductions without significant negative impacts on key services. Councillor Gareth Roberts, Leader of Richmond Council has stated ‘These cuts are a direct assault on the services our residents rely on and punish Richmond for years of responsible financial management’, further arguing ‘We are taking this fight directly to government and using every route available to demand a settlement that protects services and gives Richmond a fair deal’.
