Richmond Council Warns of “Unprecedented” Funding Crisis as Legal Action Begins

Richmond Council has begun the first steps towards legal action as concerns mount over the Richmond council funding crisis, warning that proposed government reforms could strip tens of millions from vital local services in the borough.

The authority says the updated funding formula, due to take effect from 2026 to 2027, could result in the loss of more than ninety per cent of its current allocation. That shortfall, it argues, would have an immediate and profound effect on elderly residents, vulnerable families and children who rely on specialist support.

In a letter sent to the Secretary of State, Steve Reed, the council outlined its intention to challenge the consultation process behind the Fair Funding Review. It also requested the release of impact modelling so residents could understand how the proposals might affect local social care, complex needs provision and household support.

Gareth Roberts, Leader of Richmond Council, said the borough had already made substantial savings over the past six years and warned that the new formula would penalise authorities that had managed their budgets responsibly. “We’re fighting for a funding deal that recognises the real needs of our residents,” he said. “This legal action is about defending our values and making sure every voice in Richmond is heard.”

Since 2018, the council has saved nearly fifty million pounds through modernised services, restructured staffing, new procurement practices and shared administrative functions with neighbouring Wandsworth. Roberts stressed that the focus had always been on protecting frontline services rather than storing reserves.

Councillor Jim Millard, who leads on finance, described the challenge as “a moment for courage and leadership”. He added: “We owe it to our residents, especially the most vulnerable, to challenge a process that has been rushed, opaque and deeply unfair.”

Several other London boroughs have raised concerns about the consequences of the proposed review, including Kensington and Chelsea, which has warned of a significant reduction in funding over the coming years.

For anyone wanting to understand how local authorities are financed and how national allocations are set, there is clear guidance available here.

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