London borough submits Sustainable Communities Act proposal to Government in row over funding reforms
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The Royal Borough of Kensington and Chelsea has formally agreed to submit a proposal under the Sustainable Communities Act 2007, in an effort to persuade the Government to reconsider its proposed funding reforms.
Westminster City Council is meanwhile preparing to follow suit, after the council said it stands to lose around £100m in funding over the changes.
The 2007 Act allows local authorities to submit proposals to the Government requesting the removal of legislative and other barriers that prevent them from improving the sustainability of their local areas. Councils must consult residents before submitting a proposal.
Kensington and Chelsea, Westminster, Wandsworth and Richmond councils all launched consultations over potential submissions last month, amid concerns that the funding reforms would result in substantial reductions in their financial resources.
Wandsworth is understood to be poised to submit its own proposal this week. It is not yet clear whether Richmond upon Thames plans to make a submission.
Announcing the decision to proceed with a submission, Kensington and Chelsea's leader, Cllr Elizabeth Campbell, described the Fair Funding Review, which the council estimates will cost the borough £108m, as the "furthest thing from fair".
She said: "This is unfair funding, plain and simple, and an unprecedented reduction that will mean incredibly tough decisions and stark consequences for our residents.
“I have been clear from the beginning that I will exhaust every avenue to challenge this decision. As Leader, I could not stand in the Council Chamber and announce decisions affecting residents’ lives knowing there was more we could have done to persuade the Government to think again."
An update from Kensington and Chelsea issued on Wednesday (14 October) said: “The Secretary of State must consider our proposal and decide whether to accept all or part of it, giving reasons for the decision.
“Westminster, Richmond upon Thames and Wandsworth councils are also preparing proposals under the same legislation because they face similar funding reductions.
“Although each council must submit its own proposal, we are working together to make a stronger case for change.”
Cllr Paul Fisher, Cabinet Member for Value for Money and Finance at Westminster, is meanwhile scheduled to approve a submission on Thursday (22 October).
Announcing the upcoming submission on social media, a spokesperson for the council said: “The proposal reflects the strong level of public support – with 90% of those consulted agreeing – and sets out practical changes to protect services, respond to rising demand and recognise the unique costs of delivering services in central London.”
A report prepared ahead of the decision warned that the new funding formula would reduce the council's Government grant by 46%, resulting in a loss of around £100m.
The council announced this week that it plans to cut 520 jobs in light of the drop in funding.
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