Westminster City Council has announced that 520 roles, 13% of its workforce, will go after the government changed the formula that decides how much money councils receive. The city faces a £160 million funding gap over the next four years.
ITV News London led its programme on 20 October with the announcement. Political correspondent Simon Harris reported from City Hall, where staff were told that some of the losses will be compulsory redundancies and that many of the roles are senior management.
Cllr Paul Fisher, Cabinet Member for Value for Money and Finance, told ITV: "This is fundamentally a formula that punishes London and punishes low-tax, well-run councils to redistribute that money to poorer-run councils in England. It is a terrible idea, and it will fundamentally set London back by many, many years."
Four boroughs, one formula
Westminster is not alone. ITV reported four-year funding gaps of £160 million at Westminster, £160 million at Hammersmith & Fulham, £108 million at Kensington & Chelsea and £84 million at Wandsworth. Ministers have told all four that they may raise council tax above the normal 5% limit to bring bills into line with the rest of England.
Residents in Hammersmith & Fulham have already received letters warning that bills could rise by 150% next year, taking the average Band D bill to around £2,500, above the national average of £2,300. Wandsworth has said its bills could almost double.
Westminster, Kensington & Chelsea and Wandsworth, with Liberal Democrat Richmond, are planning a legal challenge to the formula. Labour-run Hammersmith & Fulham has not joined it.
What the government says
Local Government Secretary Angela Rayner told ITV that the "fair funding formula" is about making sure funding is based on need, and that some councils in more deprived areas have raised council tax by the capped amount every year while others have not.
UNISON, the union representing council workers, said the Westminster job cuts would threaten vital public services.
Tell us what matters to you
Westminster's Conservative council is making every saving it can before it touches the services residents rely on. If you have views on how the council should balance its books, tell us at westm.news/listening.
