Implications of the Fairer Funding Review

Kensington and Chelsea is facing an unprecedented funding gap as a result of the Government's Fairer Funding Review. Over the four year funding period, the Government will remove more than £100 million from our budgets, equivalent to over 40 per cent of our controllable budget.

The Council proposed to submit a proposal under the Sustainable Communities Act, calling on the Government to ensure that future funding arrangements better reflect the needs of Kensington and Chelsea and its residents.

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.

We asked residents if they supported this proposal and to rank priorities for any submission.

The consultation closed with 1,499 responses. Of these respondents, 93 per cent ‘strongly supported’ or ‘supported’ the Council’s proposed approach of asking the Government to revise its funding arrangements for Kensington and Chelsea under the Sustainable Communities Act. A total of five per cent opposed.

When asked to rank priorities for any submission, respondents gave the highest priority to allowing the Council to retain a greater share of locally generated income, such as business rates, stamp duty and income tax, followed by giving the Council more time to adapt to significant changes in Government funding.

Respondents were also invited to suggest actions the Council could ask the Government to take. The most frequent themes raised were fairness and the redistribution of funding away from efficient councils, improving efficiency, accountability and public sector spending reform, protecting essential services and vulnerable residents, and specific services and cost pressures.

These findings, supported the Council’s case for submitting a proposal under the Sustainable Communities Act 2007.

Alongside the leaders of Westminster, Wandsworth and Richmond councils, the Council has submitted proposals under the Sustainable Communities Act, calling on ministers to rethink changes to how councils are funded.

What happens next? 

The Secretary of State must consider our proposal and decide whether to accept all or part of it, giving reasons for the decision.

Our submission to Whitehall is part of our ongoing efforts to protect council services and stand up for residents. We will continue to press the Government to reconsider its proposals and make sure Kensington and Chelsea's voice is heard.