Three London boroughs turn to Sustainable Communities Act amid calls for Government to revisit “unfair” funding reforms

Wandsworth, Kensington and Chelsea, and Westminster Councils estimate that the proposed Fair Funding reforms would result in a combined loss of £292 million in funding.

They warn that this reduction would have “significant consequences” for their communities, putting pressure on essential local services and causing economic, social and environmental harm.

The Sustainable Communities Act gives local authorities the power to ask central government to remove laws, policies or other barriers that prevent them from improving the economic, social and environmental wellbeing of their communities.

The three councils are therefore seeking to use the Sustainable Communities Act to challenge the proposed changes.

Last week, Wandsworth Borough Council outlined plans to ask Government for any funding cuts to be introduced over a longer period to give the council “more time to adapt”, and for greater powers to keep more of the money raised locally and invest it back into local services.

Alongside the announcement, it launched a resident engagement survey to help inform decisions about council spending and services.

Cllr Robert Morritt, Leader of Wandsworth Council, said: “Wandsworth residents deserve a fairer deal. Our core government funding has been cut by 40% while demand for vital local services continues to grow.

"Through our intended proposal under the Sustainable Communities Act we are arguing for a system that gives communities a stronger voice and councils the resources they need to deliver for residents.”

Cllr Paul Swaddle, Leader of Westminster City Council, said: "We support the objective of unlocking growth across every region of the United Kingdom. But that mission will only succeed if it is based on a simple economic truth: growth in London and growth elsewhere are not competing objectives.

"Westminster generates approximately £95 billion of economic output each year. It is home to one of the UK’s densest concentrations of jobs, businesses, retail, hospitality, culture, tourism and professional services.

"The route to a stronger national economy cannot be to diminish London, forcing councils at the heart of the capital to cut services and put up council tax. If the capital becomes less competitive, the whole country will feel the consequences through weaker tax receipts, lower investment, reduced visitor spending and a smaller global platform for UK business."

Lottie Winson