Richmond Faces Largest Grant Loss in London

8 October 2025

Richmond upon Thames is bracing for significant financial challenges as a result of the government's proposed Fair Funding Review, with the borough projected to experience the largest grant reduction in London. Councillor Jim Millard, Deputy Leader and Finance and Resources Lead Member, stated: London is being stripped of funding and, whilst Richmond gets very little government support as it is, the Government's own modelling shows we'll suffer the biggest percentage loss of grant across the whole of London.

At a council meeting on Tuesday, Councillor Millard highlighted the expected impact of the review. Richmond is projected to suffer a 90% reduction in government grant funding, translating to a loss of £45 million annually by 2028/29. The changes are expected to be phased in, starting with a £12 million reduction in 2026/27.

The Medium Term Financial Strategy (MTFS) outlines the council's financial plan for the coming years, acknowledging continuing demand pressures and cost of living challenges. The MTFS also provides an initial assessment of the government's proposed Fair Funding Review, which proposes a fundamental reset of national grant funding allocations between councils.

While the council is lobbying for a fairer settlement, it is also taking proactive steps to mitigate the impact. This includes launching a new Transformation Programme aimed at improving services and reducing costs. The council approved a one-off allocation of £1.5 million from the Financial Resilience Reserve to establish a Transformation Programme Delivery Fund.

Despite the financial headwinds, the council aims to protect front-line services and deliver on its commitments outlined in the Corporate Plan. These include initiatives focused on environmental sustainability, community safety, and providing support to vulnerable residents.

The council's response to the proposed grant cuts has been robust. The council has submitted a detailed response to the government's consultation and will continue to lobby for a fair and sustainable settlement for Richmond residents. The final impact of the Fair Funding Review will be known when the government publishes the provisional local government finance settlement in December.

Councils Involved

Richmond upon Thames

Meetings Involved

Richmond upon Thames Council on 7 October 2025

People Involved

Councillor Piers Allen Chair of the Adult Social Services, Health and Housing Services Committee and Chair of the Health and Wellbeing Board Liberal Democrat Party West Twickenham

Councillor Richard Baker Liberal Democrat Party Teddington

Councillor Nancy Baldwin Vice-chair of the Finance, Policy and Resources Committee (Spokesperson for Communities, Equalities & the Voluntary Sector) Liberal Democrat Party North Richmond

Richard Bennett Chair of Audit, Standards and Statutory Accounts Committee Green Party South Twickenham

Councillor Carey Bishop Liberal Democrat Party Hampton North

Alice Bridges-Westcott Liberal Democrat Party Kew

Robin Brown Liberal Democrat Party Hampton Wick and South Teddington

Councillor Michael Butlin Armed Forces Champion Liberal Democrat Party South Twickenham

Councillor Julia Cambridge Chair of Education and Children's Services Committee Liberal Democrat Party East Sheen

Councillor Jonathan Cardy Chair of the Planning Committee Liberal Democrat Party Fulwell and Hampton Hill

Councillor James Chard Vice-Chair Transport & Air Quality Committee. Liberal Democrat Party Twickenham Riverside

Councillor John Coombs Vice-chair of the Planning Committee, Spokesperson for Arts Liberal Democrat Party Heathfield

Ian Craigie Vice-Chair of the Joint Pensions Committee Liberal Democrat Party Kew

Niki Crookdake Green Party Mortlake and Barnes Common

Councillor Sam Dalton Liberal Democrat Party Hampton

Councillor Margaret Dane Disability Champion Liberal Democrat Party East Sheen

Councillor Jeremy Davis Liberal Democrat Party Hampton North

Councillor Alexander Ehmann Chair of the Transport and Air Quality Committee Liberal Democrat Party St Margarets and North Twickenham

Councillor Charlie Engel Vice-chair, Audit, Standards and Statutory Accounts Committee Liberal Democrat Party Teddington

Petra Fleming Liberal Democrat Party Hampton Wick and South Teddington

Andrée Frieze Leader of the Opposition Green Party Ham, Petersham and Richmond Riverside

Councillor Penelope Frost Mayor of the London Borough of Richmond upon Thames Liberal Democrat Party Ham, Petersham and Richmond Riverside

Councillor Elizabeth Gant Liberal Democrat Party Hampton North

Councillor Phil Giesler Business and Growth Lead Member Liberal Democrat Party Teddington

Councillor Andy Hale Liberal Democrat Party Barnes

Councillor Matthew Hull Liberal Democrat Party Fulwell and Hampton Hill

Councillor Jo Humphreys Liberal Democrat Party Whitton

Councillor Alan Juriansz Vice-Chair, Environment, Sustainability, Culture and Sports Committee and Lead Member for Sport Liberal Democrat Party West Twickenham

Ben Khosa Liberal Democrat Party St Margarets and North Twickenham

Councillor Rhi Lee Liberal Democrat Party South Twickenham

Councillor Katie Mansfield Richmond Town Centre Project Lead Member and White Ribbon Champion Liberal Democrat Party St Margarets and North Twickenham

Zoe McLeod Liberal Democrat Party East Sheen

Councillor Anton McNulty-Howard Liberal Democrat Party Mortlake and Barnes Common

Councillor Jim Millard Deputy Leader and Finance and Resources Lead Member Liberal Democrat Party Hampton Wick and South Teddington

Marjory Millum Vice-Chair of the Planning Committee Liberal Democrat Party Barnes

Councillor Julia Neden-Watts Deputy Leader and Chair of the Environment, Sustainability, Culture and Sports Services Committee Liberal Democrat Party Twickenham Riverside

Suzette Nicholson Liberal Democrat Party Hampton

Laura O'Brien Liberal Democrat Party West Twickenham

Stephen O'Shea Liberal Democrat Party Twickenham Riverside

Rob O`Carroll Liberal Democrat Party Whitton

Tony Paterson Liberal Democrat Party Mortlake and Barnes Common

Councillor Lesley Pollesche Liberal Democrat Party Heathfield

Councillor Richard Pyne Liberal Democrat Party North Richmond

Gareth Richards Cycling Champion Liberal Democrat Party Ham, Petersham and Richmond Riverside

Councillor Gareth Roberts Leader of the Council Liberal Democrat Party Hampton

Councillor Fiona Sacks Sanctuary Champion Liberal Democrat Party Barnes

Councillor Kuldev Sehra Liberal Democrat Party Whitton

Councillor Chris Varley Lead Member for Housing and Vice-Chair Adult Social Services, Health and Housing Committee Liberal Democrat Party South Richmond

Councillor Paulina Vassileva Tenants’ Champion Liberal Democrat Party South Richmond

Councillor Clare Vollum Deputy Mayor and Dementia Champion Liberal Democrat Party Kew

Chas Warlow Deputy Leader of the Opposition Green Party South Richmond

Councillor Richard Warren Chair of Policy and Performance Review Board Liberal Democrat Party North Richmond

Councillor Michael Wilson Liberal Democrat Party Heathfield

Caroline Wren Green Party Fulwell and Hampton Hill

Topics

fair funding review Richmond Council Councillor Jim Millard Item 13 - Medium Term Financial Strategy Transformation Programme Richmond Council Corporate Plan