Full Breakdown
Fair Funding Review 2.0 Triggers Major Funding Cuts and Proposed Tax Hike in London Boroughs
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Core Changes and Council-Tax Proposal
The government’s Fair Funding Review 2.0 is designed to redirect council-funding toward areas of higher deprivation. Wandsworth’s Conservative administration warns that the reforms would slash the borough’s budget by roughly 40 percent, forcing deep service cuts. In response, the council has drafted a proposal to raise council tax by 94 percent from April and to eliminate its £6.2 million cost-of-living reserve, replace Labour’s “Access for All” concessionary scheme with a reduced version, cancel its Borough of Sanctuary status, and suspend voluntary-sector grants for four years.
Impact on Specific Boroughs
- Kensington and Chelsea: projected loss of £108 million, more than 40 percent of its central funding over the next four years.
- Westminster: expected reduction of around £100 million, equivalent to 46 percent of its current allocation.
- Richmond: slated to lose £26 million, representing a 58 percent cut to core funding.
- Wandsworth: faces a 40 percent budget cut and the proposed 94 percent tax increase.
These figures are derived from the review’s funding model, which reallocates resources to poorer districts.
Council Response and Appeal
All affected councils have formally submitted revised funding proposals under the Sustainable Communities Act, urging the central government to reconsider the allocations. Wandsworth Council leader Robert Morritt, heading a Conservative minority administration, emphasized that residents should not bear the cost of “changes imposed by Whitehall.”
Verbatim Quotes
- “Residents should not have to pick up the bill for changes imposed by Whitehall. This proposal takes our case directly to government.” — Robert Morritt
Data & Statistics
- Council-tax rise proposed for Wandsworth: +94 percent (effective April).
- Cost-of-living reserve to be closed: £6.2 million unspent.
- Funding cuts: Wandsworth ? 40 %; Kensington and Chelsea > 40 %; Westminster ? 46 %; Richmond ? 58 %.
- Voluntary-sector grants suspension: 4 years.
The councils’ appeals highlight the tension between the government’s deprivation-targeted funding strategy and the fiscal pressures faced by relatively affluent London boroughs.