Fair Funding Review
Councils are grappling with budget pressures and funding changes stemming from the Fair Funding review.
Merton Council's Overview and Scrutiny Committee scrutinised budget and savings proposals in March 2026, noting that the provisional local government finance settlement for 2026-2029 incorporates changes from the Fair Funding review. The council is considering additional savings of £1.3 million, with a further £1.744 million needing identification before the February Budget Council. Financial pressures, particularly in social care, remain ongoing concerns for councils.
In February 2026, Southwark Council's Cabinet approved a 3% council tax increase for the upcoming financial year, as part of its provisional Local Government Finance Settlement for 2026-27. Kensington and Chelsea Council considered a voluntary redundancy scheme in September 2025, aiming for £4.5 million in savings, citing financial challenges due to the national Fair Funding review.
The Fair Funding review is a national process by the UK government to reassess how central government funding is allocated to local authorities in England. Its aim is to ensure a fairer distribution of resources based on the needs of their populations, with outcomes now influencing local government finance settlements.
Key facts
- Merton Council's 2026-2029 finance settlement includes Fair Funding review changes. Source
- Merton Council is considering £1.3 million additional savings, with £1.744 million more needed. Source
- Southwark Council's Cabinet approved a 3% council tax increase in February 2026. Source
- Kensington and Chelsea Council considered a voluntary redundancy scheme in September 2025. Source
- Kensington and Chelsea Council faces financial challenges due to the Fair Funding review. 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.