Three Conservative council leaders in London have written to the Prime Minister, challenging the government's funding formula that they claim "punishes low tax councils." Westminster City Council's Paul Swaddle, Wandsworth Council's Robert Morritt, and Kensington and Chelsea Council's Elizabeth Campbell stated in a letter that their boroughs face significant cuts to local services if they do not increase council tax.
"This is not just devolving blame, it is devolving council tax rises and government cuts," the leaders wrote. "This is fiddled funding, cooked up in Whitehall but leaving town halls to carry the blame."
The leaders also criticized additional council tax levies on many homes, noting that "none of the revenues from this tax penalty will be retained by councils or by the mayor of London." They asserted, "There is nothing local about it."
Six councils have been granted two-year "funding realignment powers," allowing them to raise council tax beyond a 5% threshold. The three Conservative leaders, along with the City of London, Hammersmith and Fulham, and Windsor and Maidenhead councils, stated they were "singled out" for this provision.
According to the leaders, the Ministry of Housing, Communities and Local Government factored in "massive rises in council tax" in their areas when calculating the Local Government Finance Settlement to offset reductions in central government funding. This approach follows reforms that redirect more money to deprived areas while reducing funds for wealthier areas. A row of townhouses in an affluent tree-lined street in London is pictured.