Richmond Council has criticised proposed changes to government funding, warning the borough faces the steepest reductions in London under the Fair Funding 2.0 review.

The plans could see a 90% decrease in funding, leaving Richmond hit harder than any other outer London borough.

Fair Funding 2.0 is the government's proposed update to the way councils in England receive funding.

It aims to redistribute money based on a new formula which takes account of factors like population, deprivation and local need.

Council Leader Councillor Gareth Roberts said the review risks punishing councils like Richmond for running their finances responsibly.

Cllr Roberts told Nub News: "Eventually, we'll be seeing a £45 million cut in our funding year on year. The idea is that this will be tapered, but the end goal is £45 million worth of savings and that is an enormous amount of money from our budget.

"It's money which pays for services for the most vulnerable people in Richmond, for adult social care, for children's services and we simply cannot understand why the government is targeting these areas."

The Council Leader highlighted that Richmond has already made significant efforts to deliver savings, including a shared staffing arrangement with Wandsworth Council and recent efficiency projects such as the Civic Centre upgrade.

The Council recently began its energy efficiency upgrade to the Civic Centre in Twickenham (credit: Cesar Medina).

"Since we came in, in 2018, we have managed to identify £50 million worth of savings," said Cllr Roberts.

"We've done everything the government would expect of a prudent, sensible local authority. And yet still they're coming to us and saying we'll get the biggest percentage cut in London – actually in the whole country."

Cllr Roberts also pointed to flaws in the funding formula, which gives major increases to boroughs like Enfield and Hillingdon while penalising Richmond.

"It just doesn't add up," he said. "The formula doesn't take into account the cost of living here. Richmond is an expensive borough, house prices and rents are high and people on the breadline are paying far more of their income just to live here.

"Your sums are off if you're not measuring deprivation properly."

The Council is looking at new ways to generate income, including working with filming companies, renting out buildings, and making its property portfolio more efficient.

Cllr Roberts continued: "We're hoping to meet with the Minister for Local Government to put our case. It feels as though somebody has created a spreadsheet, and thinks the job is done. And it isn't until you get sat around a table with human beings and speak politician to politician and say, 'look, this is crazy'."

He also called for a rethink on the national council tax system. "Council tax is simply not fit for purpose," said Cllr Roberts.

"Rather than tinkering, the government needs to recognise there's a systemic problem across the country.

"We know Richmond residents already pay well into their local services and many are happy to do so. But this step by the government is wrong and unfair. We've taken tough decisions, but wiping out our funding like this is not what anyone would expect from a fair funding review."

READ MORE: Richmond Council leader calls for clearer funding and fairer support following Government Spending Review.