Richmond secures transitional protections but still faces major funding cuts under government settlement

Richmond Council has secured transitional funding protections in the government’s provisional Local Government Finance Settlement, following months of sustained advocacy on behalf of residents.

The settlement, released last week, confirms cash-flat core funding over the next three years, transitional protection that reduces the scale of losses originally projected but still leaves the Council facing a very significant real-terms funding cut of £29 million by the third year of the settlement.

Councillor Gareth Roberts, Leader of Richmond Council, said: “Transitional protection provides some breathing space for the borough, but this deal still leaves Richmond facing massive cuts in government funding over this period. We have been absolutely clear with the government: Richmond needs a fair settlement that protects essential services for the people who rely on them.

“It is frankly shocking that councils that have planned well and lived within their means continue to be penalised in order to give cash bailouts to areas that have not run their finances as effectively, while demand for essential services keeps rising.”

Councillor Jim Millard, Deputy Leader and Finance Lead, agreed, adding: “The reality of this settlement is clear: to continue safeguarding the services that keep our community safe and supported, we will be forced to increase Council tax by the maximum amount permitted each year. This is not something we do lightly, but the Government has left us with no alternative – it would otherwise mean devastating cuts that would put vulnerable residents at risk and undermine the fabric of our community.

“We remain resolutely committed to innovation and sound financial management, using every pound effectively, driving efficiency through our ambitious transformation programme to find an additional £30m in annual savings, improving outcomes for residents and safeguarding the future of our borough.” 

The provisional settlement confirms cash-flat core funding over the next three years, reducing the scale of losses originally projected under the Fair Funding Review – with losses for Richmond now projected at £9m next year, rising to £29m in 2028/29 rather than the £12m to £45m previously anticipated – the Council still faces significant reductions in funding.

The Council will continue to scrutinise the Government’s detailed modelling, including the new Fair Funding Assessment, consolidated grants, and business rates reform, ahead of the final settlement next month. Richmond will also maintain close engagement with London Councils, MHCLG officials, and sector partners to ensure the long-term sustainability of local services.