London borough launches judicial review challenge over Fair Funding Review

The local authority is challenging the alleged lack of transparency and fairness in the consultation process for the new funding model, which could result in Richmond upon Thames losing up to £45 million per year – over 90% of its current funding.

The reforms outline a new approach to distributing funding between local authorities in England, including the end of competitive bidding processes for small pots of money and measures that Whitehall said would make allocations "fairer" between councils.

They include an updated formula to calculate adult social care funding and a resolution to extend the Dedicated Schools Grant Statutory Override for SEND costs until March 2028, together with a new formula to recognise home-to-school transport costs, among other things.

However, Richmond's legal letter has called on the Government to release its impact models and revisit the funding formula, alongside acknowledging the council's previous cost efficiencies.

Cllr Gareth Roberts, leader of Richmond Council, said the review "risks punishing councils like Richmond for running their finances responsibly".

He added: "We cannot stand by while our community faces potentially devastating cuts to the services people rely on.

"We're fighting for a funding deal that recognises the real needs of our residents. This legal action is about defending our values and making sure every voice in Richmond is heard."

Roberts said the council will suffer the "steepest reduction in funding across London, indeed across the whole country" under the changes.

He continued: "The Government had promised bespoke support, and the one-size-fits-all approach in Fair Funding 2.0 ignores the unique pressures that Richmond faces.

"It is unheard of for a government to give councils less than three months' formal notice to implement cuts of this scale. It is bordering on irresponsible. We're calling for a just transition."

The changes have previously been criticised by London Councils - which represents all 32 of the capital's boroughs - as containing "flawed" measures for deprivation, and a new formula for children's services which "dramatically underestimates" the level of need in London.

The Ministry of Housing, Communities & Local Government has been approached for comment.

Adam Carey