Four London councils have formally asked the Government to reconsider how its funding reforms affect their boroughs, submitting proposals under the Sustainable Communities Act on Thursday morning. Wandsworth, Westminster, Kensington and Chelsea, and Richmond say their joint action is intended to secure a fairer funding settlement. The submission is a request for ministers to think again; it does not mean the Government has changed its policy or accepted the councils’ case.
Formal proposals submitted to ministers
The four authorities submitted their proposals on 22 October. The Sustainable Communities Act provides a route for councils to ask central Government to remove policies or other barriers that they consider obstruct their communities’ economic, social or environmental wellbeing. The councils are using that process to challenge the effect of the Government’s local-authority funding arrangements.
Their intervention follows earlier campaigning and consultation work by individual boroughs. The latest development is not simply another warning about possible budget pressures: the councils have now taken the formal step of submitting proposals. Each authority’s case relates to the funding treatment it faces, while the councils have presented their action as a collective appeal for ministers to reconsider the approach.
That distinction matters. The proposals are advocacy by local authorities, not a decision by Government to revise the funding formula. No policy reversal or accepted change to the settlement was established when the proposals were submitted. The next step rests with central Government, which must consider the request through the relevant process.
Wandsworth’s figures are forecasts
Wandsworth says the current funding arrangements would reduce its funding by £84 million a year by 2029, which it describes as equivalent to a 40 per cent reduction. The borough says that amount is greater than its spending on parks, libraries, leisure centres, bin collection and street cleaning combined. These are the council’s projections about the effect of the funding arrangements, rather than a report that an £84 million annual cut has already taken place.
The council has warned that, if the Government does not change its approach, pressure on its finances could mean a substantial Council Tax increase to maintain essential services. That is a prospective consequence set out by the authority, not a confirmed tax decision or a settled outcome for services. The submission itself does not determine what will happen to council budgets, tax bills or provision.
The other boroughs have also set out concerns about the scale and distribution of the proposed funding changes. Those estimates differ in their measures and periods, so they should not be treated as identical figures or combined into a single confirmed loss. They describe councils’ assessments of the reforms, not money already removed from their budgets.
What the act does — and does not do
The legislation gives councils a formal means of putting proposals to central Government after consulting residents. It does not itself require ministers to adopt every request, nor does submission automatically suspend or reverse the funding arrangements. The four councils are seeking reconsideration; the Government’s response and any resulting decision remain separate stages.
Wandsworth has said its proposal draws on a borough-wide engagement exercise in which more than 15,000 residents took part, with 92 per cent of participants supporting action under the Act. That result describes the people who participated in the exercise. It should not be read as a survey of every Wandsworth resident.
The councils argue that the funding approach risks placing pressure on local services and could require difficult choices. Those warnings reflect the authorities’ view of possible consequences if the arrangements remain unchanged. The formal submission creates an opportunity for their arguments to be considered, but it does not establish that services will be cut, taxes will rise by a particular amount, or that ministers will agree to change course.
For now, the confirmed development is procedural but significant: four boroughs have formally placed proposals before central Government. Whether that action changes the funding settlement depends on the Government’s consideration and any decision that follows. Until such a decision is announced, the £84 million and 40 per cent figures remain Wandsworth Council’s forecast, and the councils requested rethink remains a proposal rather than an outcome.
