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London: Kensington and Chelsea launches formal challenge to Fair Funding review
The Royal Borough estimates a £108m cut in government funding over four years — more than 40% of its controllable budget; 93% of consultation respondents backed the challenge.
Why it matters
The Royal Borough of Kensington and Chelsea's cabinet has agreed to submit a formal proposal to communities secretary Angela Rayner under the Sustainable Communities Act 2017, asking for a rethink of the Fair Funding Review. The borough estimates government funding will fall by £108 million between 2026-27 and 2029-30 — more than 40% of what it calls its "controllable" budget.
Residents back the challenge
A public consultation held from 2 September to 4 October drew about 1,500 responses, with 93% supporting the challenge. The borough argues the funding formula fails to recognise its high housing costs, population density and demand for services, while effectively penalising it for keeping council tax low. Leader Elizabeth Campbell called the new formula "the furthest thing from fair" and said she will "exhaust every avenue" to challenge it.
Boroughs join forces
Under the legislation, the communities secretary must consider the proposal and give reasons for the decision. Kensington and Chelsea says it is working alongside Westminster, Richmond upon Thames and Wandsworth councils to strengthen the case.
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