The Deputy Leader and Finance Lead for Richmond Council has voiced serious concerns over the Government's proposed 'Fair Funding Reforms', warning the changes could disproportionately impact responsible councils and place further pressure on local taxpayers.

Councillor Jim Millard said the reforms risk penalising boroughs like Richmond, which have made significant efficiency savings and managed finances prudently, only to now face the prospect of losing further funding.

"The government expects Richmond residents to pay increasingly high levels of Council Tax – rising by 5% each year – just to maintain essential services," said Cllr Millard.

"Costs of social care and dealing with homelessness are escalating quickly but the government has failed to provide adequate funding across the system.

"I am concerned that by reallocating a funding settlement that is already insufficient, Richmond residents are going to lose out even more," he added.

The Council is particularly concerned that the proposed funding formulae may not fairly reflect local needs.

Specific concerns have been raised around how adult social care costs are measured, as well as the adequacy of funding for children's services.

The so-called 'Foundation Formula', which is intended to account for core local services such as waste collection and maintaining parks, is also seen as poorly suited to areas like Richmond.

advertisement

Cllr Millard continued: "Since 2018 we've made almost £50m of efficiency savings through modernising services, streamlining processes, improved procurement and income generation."

"We've delivered significant capital investment without needing to borrow and have built up reserves responsibly, but now it feels as though we're being punished for it.

"That sends the wrong message to councils who manage their finances prudently."

The Council confirmed it will be responding to the Government's latest consultation on funding and will continue working with local MPs Munira Wilson and Sarah Olney to lobby for changes.

"While acknowledging the importance of a fair distribution, we will be urging the government to create a funding system that recognises the needs of all communities.

"This isn't about opposing support for other areas of the country – it's about ensuring there's enough money in the system for everyone, and that the formulae used are genuinely fair," added Councillor Millard.