Richmond councillors have called on the Government to reconsider its proposed local-authority funding reforms, warning that the borough could lose £29 million a year in core funding by 2028/29. The motion was passed at a Full Council meeting on Tuesday 6 October, and the council published its account the following day.
The council says the projected annual reduction would represent about 58 per cent of Richmond’s core funding allocation, the largest percentage cut among London boroughs. It also estimates a cumulative loss of £102 million over four years. These are the authority’s forecasts of the reforms’ effect, not money already removed or a final funding decision.
Councillors said the changes could put services under pressure and affect residents who rely on them. The council has also warned that the funding changes could exhaust its financial reserves within the next few years. That, too, is a projected risk rather than a statement that reserves have already been depleted.
Three changes sought
The motion was proposed by Councillor Jim Millard, the deputy leader and lead member for finance and resources. In the council’s account, he said the reforms risked leaving vital services facing a “cliff edge” and argued that residents should receive a fair deal. The motion is a political request for ministers to rethink their approach; it does not itself alter the Government’s funding arrangements.
Richmond is asking residents to contribute to a proposal under the Sustainable Communities Act. The consultation seeks views on whether the council should make a formal proposal to central government and what it should prioritise. The authority says such proposals can seek changes to laws, policies or other barriers affecting communities, but that councils must consult residents and have their support before submitting one.
The council’s proposed priorities are to revisit the funding allocations, extend the transition period in line with previous funding reviews, and allow councils to retain a greater share of income generated locally. The authority says the reforms are being phased in over three years, which it describes as shorter than the transition used in earlier local-government funding changes.
The consultation page explains that feedback will help shape future decision-making and the proposal. It asks respondents both whether they support the council submitting a proposal and which areas should be prioritised. Residents can respond online, or request a paper questionnaire or another format from the council.
Consultation remains open
The consultation closes on 14 October. Richmond says residents’ views will frame the proposal it intends to put to the Government. No outcome of the consultation, final proposal or Government response had been announced in the council’s 7 October update.
The funding dispute predates the Full Council motion. In September, Richmond had already urged residents to support a campaign against the reforms and described a consultation concerning the same three requested changes. The October vote therefore gives the council’s opposition a formal Full Council expression, while the consultation continues; it should not be mistaken for a newly calculated loss or a settled change to the funding formula.
The £29 million annual figure, the 58 per cent share and the four-year £102 million estimate are all presented by Richmond as consequences of the proposed reforms. The council’s announcement does not say that the Government has accepted its requested changes, nor does it report a final settlement. The immediate next step described by the authority is the close of the consultation and preparation of its proposal using residents’ feedback.
