Wandsworth, Richmond, Kensington & Chelsea and Westminster face up to £108m funding cuts
Council leaders submitted revised funding plans to the Treasury on 22 October 2026, warning of service reductions and tax hikes as the Fair Funding Review 2.0 cuts central grants.
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On 22 October 2026 the leaders of Wandsworth, Richmond, Kensington and Chelsea and Westminster councils delivered alternative funding plans to the Treasury. The proposals were filed under the Sustainable Communities Act and aim to persuade ministers to rethink the Fair Funding Review 2.0, which will slash central grants across the four boroughs.
Scale of the cuts
Four London boroughs submit revised funding bids as Fair Funding Review 2.0 threatens up to 58% cuts
Wandsworth plans a 94% council‑tax rise and closure of its £6.2 million reserve while Kensington & Chelsea, Richmond and Westminster face multi‑million funding losses.
Wandsworth Council, a Conservative‑run authority, calculates that the review will remove £84 million from its central grant each year, equivalent to a 40 % drop by 2030. Kensington and Chelsea, a Tory‑led borough, projects a loss of £108 million, more than 40 % of its funding, over the next four years. Westminster City Council expects a reduction of about £100 million, roughly 46 % of its central grant. Richmond Council, led by the Liberal Democrats, faces a £26 million cut, amounting to 58 % of its core funding by the end of the decade.
Council responses and proposed measures
Wandsworth’s administration says the cuts will force it to slash services and raise council tax by 94 % from April. It also plans to close its cost‑of‑living reserve, which holds £6.2 million of unspent funds, replace the Access for All leisure concession with a smaller scheme, cancel its Borough of Sanctuary status and suspend voluntary‑sector grants for four years. Kensington and Chelsea’s leader, Elizabeth Campbell, warned she will use every tool to protect residents. Westminster has announced a staff reduction of 520 jobs, the largest cut in its history. Richmond’s leader, Gareth Roberts, said the cuts risk pushing the council to a financial cliff edge.
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Residents should not have to pick up the bill for changes imposed by Whitehall.
Robert Morritt, leader of Wandsworth Council
What happens next
The Treasury will review the alternative proposals under the Sustainable Communities Act. Ministers have previously said transitional arrangements will protect councils from a cliff edge, but no timeline for a decision has been given. If the cuts are implemented as planned, each borough will need to finalise its tax rise and service reduction plans before the 2027 financial year.
Council leaders have urged residents to monitor upcoming council tax consultations and to submit feedback on the revised proposals. The outcome of the Treasury’s review will determine whether the proposed tax hikes and service cuts proceed as outlined.
Questions this report answers
+How much central funding will Wandsworth lose?
Wandsworth Council says the Fair Funding Review will cut its central grant by £84 million each year, which is a 40 % reduction by 2030. The loss will require the council to raise council tax dramatically and to reduce several services.
+What tax increase is Wandsworth proposing?
Wandsworth proposes to raise council tax by 94 % from April to cover the shortfall created by the funding cuts. The increase is part of a broader cost‑cutting programme that also includes closing reserves and suspending grants.
+When did the council leaders submit their revised funding proposals?
The four council leaders handed their revised funding proposals to the Treasury on 22 October 2026. They filed the documents under the Sustainable Communities Act, asking ministers to reconsider the Fair Funding Review cuts.
+What will happen after the Treasury reviews the proposals?
The Treasury will assess the alternative plans and decide whether to adjust the funding formula. No decision date has been announced. If the cuts proceed, each borough will implement its tax rise and service reduction measures before the 2027 financial year.
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