Westminster City Council has warned it faces losing £100m in Government funding over the next four years, a 46% reduction in grant support, as a result of the Government's new ‘fairer funding’ formula.
The formula shifts funding away from central London authorities towards other parts of the country. Westminster argues the calculations fail to account for high levels of poverty and social need in the city, as well as the pressure placed on services by around one million daily visitors.
In response, the Government has allowed Westminster to raise council tax beyond the standard 4.99% ceiling next year, one of only six authorities nationally given this freedom.
The council is launching a resident engagement programme this summer, asking its 210,000 residents which services they value most, ahead of setting its 2027/28 budget.
Cllr Paul Fisher, cabinet member for Value for Money and Finance, said the council faced ‘stark and very tough choices’ and that efficiency savings, including a £30m technology and AI transformation programme, would not be enough to close the gap.
The council currently charges the second-lowest council tax in England.
For more on the impact of the Government's fairer funding reforms, check out The Unfair Cost of ‘Fairer’ Funding for London by Cllr Elizabeth Campbell, leader of Kensington and Chelsea Council.
