Conservative Councils Challenge UK Government Over Funding Reforms

Conservative council leaders from Westminster City Council, Wandsworth Council, and Kensington and Chelsea London Borough Council have challenged the prime minister over central government funding reforms. In a joint letter, the leaders accused the government of devolving blame and using a fiddled funding formula that punishes councils with low tax rates to redirect cash toward deprived areas.

The leaders argue that a fair funding review has forced wealthier councils to either significantly raise council taxes or cut local services. Six councils, including the City of London, Hammersmith & Fulham, and Windsor & Maidenhead, were granted two-year funding realignment powers to exceed the standard 5% tax increase threshold.

Shadow Local Government Secretary Sir James Cleverly supported the councils, characterizing the situation as a Burnham penalty for London taxpayers and urging Local Government Secretary Angela Rayner to review the changes. A government spokesperson defended the reforms, stating they fix an outdated system where wealthy areas previously received disproportionate support, ensuring funding now reaches the areas of greatest need.