Richmond Council takes legal action against ‘unfair government cuts’

Richmond Council has commenced the process for bold legal action against the government’s proposed Fair Funding reforms, which threaten to slash funding for essential local services. The Council is challenging the lack of transparency and fairness in the consultation process for these reforms, which could see Richmond upon Thames lose up to £45 million per year – over 90% of its current funding.

The Council, which would be the worst-hit in the entire country by the government’s reforms, has written to the Secretary of State for Housing, Communities and Local Government, under the protocol for judicial review to challenge the consultation process and subsequent decision of the Fair Funding Review 2.0.

Councillor Gareth Roberts, Leader of Richmond Council said: “All councils should get a fair funding deal. This review risks punishing councils like Richmond for running its finances responsibly.

“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.”

Richmond Council’s Deputy Leader and Lead Member for Finance, Councillor Jim Millard added: “This is a moment for courage and leadership. We owe it to our residents – especially the most vulnerable – to challenge a process that has been rushed, opaque, and deeply unfair.

“We are calling for transparency from the government to publish its model, and work with us to design a fairer approach to reflect the true cost of services and meet the needs of all communities, in particular those who are the most vulnerable.”

The Council is holding the government accountable by requesting transparency through the release of the impact models and revisiting the funding formula, while acknowledging the council’s previous cost efficiencies.

Councillor Roberts continued: “Since 2018 we've delivered almost £50m of efficiency savings through modernising services, streamlining processes, improved procurement, and income generation.

“Richmond will suffer the steepest reduction in funding across London, indeed across the whole country. 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.”

Above all, the Council stresses the importance of recognising the human impact behind the numbers – elderly residents reliant on social care, children with complex needs, and low-income households. This is about ensuring the funding formula used, and the time period for any transition, is genuinely fair for each community.