Three Conservative-led London councils, Westminster, Kensington & Chelsea and Wandsworth, have written to Prime Minister Andy Burnham asking him to review the Fairer Funding Review, which the councils say will cost them £100 million, £108 million and £84 million respectively over the next four years.
The review, introduced under Sir Keir Starmer, changes how council grants are calculated; the three council leaders, Cllr Paul Swaddle OBE, Cllr Elizabeth Campbell and Cllr Robert Morritt, say they will use legal powers to formally challenge the decision. In their letter, dated 20 August, the leaders wrote:
"Your announcement [on devolution] pledged to promote growth in every postcode by letting local authorities keep the proceeds of taxes. But the reverse is happening here, every postcode is being punished, every postcode is facing higher local taxes... It would seem that Labour's devolution only entails higher taxes and never keeping taxes down."
The letter followed comments by senior Conservative politician Sir James Cleverly, who is running to be Mayor of London, accusing the Prime Minister of "waging a war on London" and pursuing a "very anti-London agenda," telling LBC that Burnham was "stripping hundreds of millions of pounds out of the budget of London councils."
Cllr Swaddle said: "James Cleverly is right. The Government's Fairer Funding Review is stripping hundreds of millions of pounds out of London councils, including here in Westminster. Andy Burnham needs to explain why Londoners, who already pay some of the highest taxes and housing costs in the country, are being asked to subsidise a political fix elsewhere." Cllr Morritt said Wandsworth's core government funding had been cut by 40 per cent while demand for services continued to grow, and that the councils' proposal under the Sustainable Communities Act argued for "a system that gives communities a stronger voice and councils the resources they need to deliver for residents." Neither the Prime Minister's office nor the Ministry of Housing, Communities and Local Government responded to MyLondon's request for comment.
3 Tory London councils accuse Andy Burnham of crippling them financially and threaten legal action
Just days before the letter was sent, senior Conservative politician Sir James Cleverly, who has launched a bid to run for Mayor of London, accused the Prime Minister of "waging a war on London" and pursuing a "very anti-London agenda".
Speaking to LBC on Sunday, he said Burnham was "stripping hundreds of millions of pounds out of the budget of London councils".
Cllr Paul Swaddle OBE said:
"James Cleverly is right. The Government’s Fairer Funding Review is stripping hundreds of millions of pounds out of London councils, including here in Westminster.
"Andy Burnham needs to explain why Londoners — who already pay some of the highest taxes and housing costs in the country — are being asked to subsidise a political fix elsewhere."
You can read Katherine Gray's article for MyLondon in full on their website.
