Four London councils submit Sustainable Communities Act proposals to Government in row over funding reforms
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Four London councils have formally submitted proposals under the Sustainable Communities Act 2007, in an effort to persuade the Government to reconsider its proposed funding reforms.
Wandsworth, Westminster, Kensington and Chelsea, and Richmond councils all submitted proposals today amid concerns that the Government’s Fair Funding Formula 2.0 will leave them facing budget cuts totalling hundreds of millions of pounds.
The 2007 Act allows local authorities to submit proposals to the Government requesting the removal of legislative and other barriers that prevent them from improving the sustainability of their local areas. Councils must consult residents before submitting a proposal.
Under the new formula, Wandsworth’s funding would be cut by £84m a year by 2029, which the council said amounts to more than all of its spending on parks, libraries, leisure centres, bin collections, and street cleaning.
Westminster is meanwhile facing a funding gap of £160m by 2029, while Kensington and Chelsea’s funding would be cut by £108m over four years.
Richmond’s annual core funding would be cut by £29m by 2028/29, which is around 58% of its core funding allocation and the largest percentage cut in London. Over a four-year period, the council would lose £102m from the changes, Richmond has said.
Announcing the decision to proceed with a submission, Kensington and Chelsea's leader, Cllr Elizabeth Campbell, described the Fair Funding Review as the "furthest thing from fair".
She said: "This is unfair funding, plain and simple, and an unprecedented reduction that will mean incredibly tough decisions and stark consequences for our residents.
“I have been clear from the beginning that I will exhaust every avenue to challenge this decision. As Leader, I could not stand in the Council Chamber and announce decisions affecting residents’ lives knowing there was more we could have done to persuade the Government to think again."
An update from Kensington and Chelsea issued on Wednesday (14 October) said: “The Secretary of State must consider our proposal and decide whether to accept all or part of it, giving reasons for the decision.
“Westminster, Richmond upon Thames and Wandsworth councils are also preparing proposals under the same legislation because they face similar funding reductions.
“Although each council must submit its own proposal, we are working together to make a stronger case for change.”
Cllr Paul Fisher, Cabinet Member for Value for Money and Finance at Westminster, is scheduled to approve a submission today (22 October).
Announcing the upcoming submission on social media, a spokesperson for the council said: “The proposal reflects the strong level of public support – with 90% of those consulted agreeing – and sets out practical changes to protect services, respond to rising demand and recognise the unique costs of delivering services in central London.”
Westminster announced this week that it plans to cut 520 jobs in light of the drop in funding.
Cllr Robert Morritt, leader of Wandsworth Council, said the funding changes "unfairly" target London councils "that already contribute most heavily to the public purse", adding: "Wandsworth is being punished for running efficient services and keeping council tax low. The message to residents is clear: we are on your side, we are making your case, and we will keep fighting for the funding Wandsworth deserves."
Richmond's leader, Cllr Gareth Reberts meanwhile described the new formula as a "raid on responsible councils".
He said: "Ministers cannot keep pretending that cuts on this scale will come without consequences. They risk pushing up Council Tax, hollowing out vital services and destabilising councils that have done everything asked of them.
"By joining forces, we are sending the Government a message it cannot ignore: Stop punishing our residents, rethink these reckless reforms and give London a funding deal it deserves."
Adam Carey
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