Fair Funding Review 2.0
Councils are currently discussing the significant grant funding cuts expected for London boroughs under the Fair Funding Review 2.0.
Richmond upon Thames Council faces a potential 91% cut to its grant funding, the largest nationally, due to proposed changes in the Fair Funding Review 2.0, as discussed in November 2025. This updated formula is expected to redirect funding from London Boroughs and Shire districts towards Shire Counties. Merton Council warned in September 2025 of a potential £700 million London-wide funding cut resulting from these changes.
The proposed changes include alterations to the Children's Services formula and the Area Cost Adjustment, which could negatively affect London boroughs, according to Merton Council in September 2025. London Councils are coordinating a lobbying response to scrutinise the Children's formula, address concerns about the Area Cost Adjustment, and emphasise the importance of accurate population data.
The Fair Funding Review 2.0 is a national government initiative to refresh the methodology for allocating funding to local authorities. It aims to redistribute grant funding based on factors such as deprivation and local costs. No further meetings or decisions regarding the review's implementation are currently scheduled.
Key facts
- Richmond upon Thames faces a potential 91% grant funding cut due to the Fair Funding Review 2.0. Source
- The updated formula will largely redirect funding from London Boroughs and Shire districts towards Shire Counties. Source
- Merton Council warned in September 2025 of a potential £700 million London-wide funding cut. Source
- Changes to the Children's Services formula and Area Cost Adjustment could negatively affect London boroughs. Source
About this summary
This summary was written automatically from our published stories and the council meeting records they draw on. It describes what councils have discussed and decided; it does not take a view on any decision. Each key fact links to the story it comes from. Updated 30 September 2026. Spotted a mistake? Email community@opencouncil.network.