The Government launched a consultation for its Fair Funding Review 2025 in June 2025. Its aim is to reform the distribution of funding to local authorities in England, with significant changes to be implemented starting in the 2026-27 financial year.
The Council is challenging the lack of transparency and fairness in the consultation process for these reforms,. It is asking for “the Government to publish its model, and work openly to design a fairer approach to reflect the true cost of services and meet the needs of all communities, in particular those who are the most vulnerable”.
The exact amounts of funding will be published in the Autumn statement but the Council believes that the proposals could see the borough lose up to £45 million per year – over 90% of its current funding. London wide there are concerns about rising service demands and historical underfunding.
The Council stresses the importance of recognising the human impact behind the numbers – elderly residents reliant on social care, children with complex needs, and low-income households. This is about ensuring the funding formula used, and the time period for any transition, is genuinely fair for each community.
The Council has commenced the process for judicial review of the Government’s proposals.
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