Richmond’s call for fair funding recognised as Government confirms improved protections

Richmond Council has welcomed a Government update indicating the borough is likely to avoid the steep funding cuts previously expected under national reforms.

Earlier projections suggested Richmond could face reductions of up to £45 million per year – over 90% of its current funding. However, the latest Policy Statement indicates Richmond is now likely to fall into the category that would receive a cash-flat settlement over the next three years – a move that would mean the Council’s core funding would not fall during the transition to the new system.

The Council has been pressing Ministers and officials for months to ensure that funding changes reflect the real pressures facing outer London boroughs and the needs of Richmond residents.

Councillor Gareth Roberts, Leader of Richmond Council, said: “This announcement shows our concerns have been heard. We have been absolutely clear with Government: Richmond needs a fair settlement that protects essential services for the people who rely on them.

“I’m pleased that Ministers have listened and that the most severe cuts originally proposed will now not be applied – it’s a significant improvement from what was originally on the table.”

Across London, councils are experiencing rapidly rising social care costs, escalating demand in children’s services and the effects of high inflation on essential contracts. Outer London boroughs like Richmond have long argued that these pressures must be properly reflected in any new national funding formula – and that any transition to a new system must be fair and stable.

The Government has confirmed:

• A three-year transition period from April 2026
• A 0% cash floor for some boroughs previously faced with reductions
• Discussions with councils on limited council tax flexibility

Councillor Jim Millard, Deputy Leader and Finance Lead, added: “This announcement is a significant improvement on the original proposals and shows the strength of our case to Government. But it’s important to be clear: national funding for councils is still falling, and local taxation is playing an ever-larger role in filling the gap.

“Our focus now is delivering our ambitious transformation programme to protect services and shield residents from steep increases that would otherwise be needed.”

The Council is awaiting the release of detailed Government modelling and will continue to work with London Councils and MHCLG officials as further information becomes available.