"Richmond Council claimed plans to update funding rules could see it lose up to 45m a year - or over 90% - of its current allocation. If realised, it would make it the worst-hit local authority in England - but the government has disputed this and said it "did not recognise the figure". Instead, the Ministry of Housing, Communities and Local Government (MHCLG) said the changes would make the funding process fairer and simpler."
"Lib Dem council leader Gareth Roberts said the authority had saved nearly 50m since 2018 by modernising services, streamlining processes, improving procurement and generating income. He said he was concerned the proposed formulae would punish local authorities which manage their finances responsibly. He added: "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.""
"The council has asked the government to release the impact models used to predict the potential effects in terms of human impact - such as elderly residents reliant on social care, children with complex needs and low-income families. Roberts said it was "unheard of" for a government to give councils less than three months' formal notice to implement cuts of this scale, and said it was "bordering on irresponsible"."
The government’s Fair Funding Review 2.0 proposes redistributing local authority funding from 2026/27, which Richmond Council says could reduce its allocation by up to 45m a year, over 90% of its current funding. The Ministry of Housing, Communities and Local Government disputes that estimate and says the changes will make funding fairer and simpler. Richmond has written to Secretary of State Steve Reed to challenge the consultation process and is preparing legal action. Council leader Gareth Roberts cited nearly 50m of savings since 2018 and warned that the proposed formulae could punish financially responsible councils and harm vulnerable residents. The council has requested the government’s impact models.
Read at www.bbc.com
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