A West London council has launched a direct appeal to the House of Lords in a desperate attempt to stop devastating funding cuts before the Chancellor's Autumn Statement.
Council Leaders Take Fight to Parliament
Kensington and Chelsea Council leader Elizabeth Campbell met with Lord Bailey of Paddington on Monday, November 10, to campaign against the £82 million in funding cuts the borough faces under the government's Fair Funding Review.
She was joined by the leader of the Conservative group at Westminster City Council, councillor Paul Swaddle, as they presented a united front against proposals that would slash £700 million from London local authorities overall.
The Flawed Funding Formula
The councillors argue that the Fair Funding Review 2.0 fails to account for key pressures facing the capital. According to Kensington and Chelsea Council, the formula dangerously excludes the cost of housing deprivation, which is a major driver of poverty in London.
Lord Bailey had previously raised concerns about the funding model during a debate on November 3, particularly questioning why the formula assumes a drop in social care needs when allocating money for children's services.
Central London Councils are now campaigning for three key changes: including housing costs in the formula, reflecting pressures from the capital's increased daytime population, and allowing more time for any changes to be implemented.
Preparing for the Worst-Case Scenario
With the Autumn Budget due on November 26 and final funding confirmation not expected until late December, the council has no choice but to prepare for severe cuts.
Public consultation on the council's budget proposals for 2026/27 will run from November 13 to January 9, 2026, giving residents opportunity to comment on difficult measures being considered.
The council is currently consulting on reducing council tax relief by up to 20 percent and implementing mass voluntary redundancies expected to save £4 million. Other measures under consideration include providing only bare minimum services to residents, hiking council tax, and closing family hubs to address the financial shortfall.
Council leader Elizabeth Campbell stated: We are facing cuts of £82 million because of the Government's fair funding review. It is our biggest budget challenge yet and it means very tough decisions ahead.
Our voice is not the only one, there are others singing from the same hymn sheet. Councils, Lords and MPs are all asking if the Government has really got this right.
We are hoping they listen and change the funding formula to acknowledge the unique pressures that London councils face, like the cost of housing and a population that doubles during the daytime.
In the meantime, we have no choice but to prepare for the worst and consult our residents on a very difficult budget.
