Fair Funding 2.0
Councils are assessing significant budget cuts and financial challenges stemming from the government's Fair Funding 2.0 reforms.
Kensington and Chelsea Council is facing an £82.7 million budget reduction between 2026/27 and 2028/29, a 40% cut, as a result of government funding reforms responding to the 'Fair Funding 2.0' consultation. The council's Leadership Team discussed this in October 2025 and is developing savings options to address the projected gap.
Other councils are also reporting financial pressures, with Enfield Council projecting a £63.4 million budget shortfall by 2029/30, as reported to its Overview & Scrutiny Committee in November 2025. Ealing Council discussed a report on local government funding reform in November 2025, noting a significant social care overspend.
Fair Funding 2.0 refers to the UK government's proposed updates to resource allocation methods for local councils, building on a 2016 consultation, which aims to reform how local authorities are funded by central government.
Key facts
- Kensington and Chelsea Council faces an £82.7 million budget cut (40%) between 2026/27 and 2028/29 due to Fair Funding 2.0 reforms. Source
- Enfield Council projects a £63.4 million budget shortfall by 2029/30. Source
- Kensington and Chelsea's Leadership Team discussed the budget update in October 2025. Source
- Ealing Council's Overview and Scrutiny Committee discussed a funding reform report in November 2025. 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.