Government must reconsider 'Unfair Funding' reforms

Published: Wednesday, September 2, 2026

Wandsworth, Kensington and Chelsea, and Westminster Councils have today signalled their intention to submit proposals under the Sustainable Communities Act, calling on the Government to reconsider its proposed Fair Funding reforms. 

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The Sustainable Communities Act gives local authorities the power to ask central government to remove laws, policies or other barriers that prevent them from improving the economic, social and environmental wellbeing of their communities.

The three Councils estimate that the proposed Fair Funding reforms would result in a combined loss of £292 million in funding. They warn that this reduction would have significant consequences for their communities, putting pressure on essential local services and causing economic, social and environmental harm.

The Councils are therefore seeking to use the Sustainable Communities Act to challenge the proposed changes and ensure that the funding framework properly reflects the needs and circumstances of their communities.

Wandsworth Council has recently launched a resident engagement survey to ensure your thoughts are heard.

Complete the survey

Kensington and Chelsea - "I am not prepared to let that happen"

Cllr Elizabeth Campbell, Leader of Kensington and Chelsea said: "The Government’s so-called Fair Funding Review will strip over £100 million from this Council over four years. The consequences will fall on residents: cuts to services and tax rises forced upon them, entirely as a result of decisions taken in Whitehall, not this Town Hall. I am not prepared to let that happen without exhausting every avenue available to us.

Alongside Westminster and Wandsworth, we will submit a proposal under the Sustainable Communities Act, calling on the Government to reconsider its proposals. Next week, I will launch a consultation with residents, giving them the opportunity to make their views heard and back our campaign. I expect there will be strong support for us to stand up for Kensington and Chelsea and fight for a fairer deal."

Wandsworth - "residents deserve a fairer deal"

Cllr Robert Morritt, Leader of Wandsworth said: “Wandsworth residents deserve a fairer deal. Our core government funding has been cut by 40% while demand for vital local services continues to grow.

"Through our intended proposal under the Sustainable Communities Act we are arguing for a system that gives communities a stronger voice and councils the resources they need to deliver for residents.”

Westminster - "the route to a stronger national economy cannot be to diminish London"

Cllr Paul Swaddle, Leader of Westminster City Council, said: "We support the objective of unlocking growth across every region of the United Kingdom. But that mission will only succeed if it is based on a simple economic truth: growth in London and growth elsewhere are not competing objectives.

"Westminster generates approximately £95 billion of economic output each year. It is home to one of the UK’s densest concentrations of jobs, businesses, retail, hospitality, culture, tourism and professional services.

"The route to a stronger national economy cannot be to diminish London, forcing councils at the heart of the capital to cut services and put up council tax. If the capital becomes less competitive, the whole country will feel the consequences through weaker tax receipts, lower investment, reduced visitor spending and a smaller global platform for UK business."