Richmond Council says its reserves could almost halve this year and run out within four years. Residents can back its challenge to the cuts until 14 October.

Richmond Council says its financial reserves could run out within four years. It blames changes to how the government funds councils.

The warning comes from a report to the council’s Finance, Policy and Resources Committee on 24 September. The council set out the main figures in a press release the next day:

  • Reserves were £52 million at the start of 2026/27.
  • They could fall to £28 million by the end of this financial year.
  • Even with the largest council tax rise the government allows, the council expects a funding gap of £19.3 million in 2027/28.
  • That gap rises to £30.8 million by 2030/31.

Put those side by side and the problem is plain. The £28 million the council expects to have left in March would not cover the single-year gap it forecasts for 2030/31.

Bar chart in pounds million: Richmond Council reserves of 52 at the start of 2026/27 and a forecast 28 at the end of 2026/27, against a funding gap of 19.3 in 2027/28 and 30.8 in 2030/31.
Reserves are a one-off pot; the gap recurs every year. Chart by Richmond Online.
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Why the council says this is happening

The council says government reforms will cut its annual core funding by £29 million by 2028/29. It puts that at around 58% of its core funding allocation, and says it is the largest percentage cut in London.

The council’s consultation page adds that the cut is being phased in over three years. It says that is shorter than in previous funding reviews, and contrasts it with the eight years given to areas in local government reorganisation to line up their council tax.

These are the council’s own figures and its own framing. The government’s reasons for the changes are not set out in the release, and we could not open the committee report itself on 29 September because the council’s committee website was returning errors.

Councillor Gareth Roberts, the council leader, said: “Reserves are there to manage risk and give councils breathing space, not to plug permanent gaps created by grossly unfair national funding decisions.”

What the council is doing about it

The council says it is:

  • reviewing its spending
  • fast-tracking £39 million of savings
  • changing how services are delivered through what it calls a transformation programme

A separate paper at the same meeting reviewed the council’s building and investment plans. The revised six-year capital programme is £233.9 million, with a potential borrowing requirement of £124.7 million. Schemes already approved will be reviewed over the coming months, and projects that save money every year will get priority.

The council has not said which services or schemes could be affected.

The consultation closes on 14 October

The council wants to send the government a formal proposal under the Sustainable Communities Act. That law lets councils ask ministers to remove laws or policies that hold back their area. A council can only submit one if it has consulted residents and they support it.

The consultation opened on 16 September and closes on 14 October 2026. It asks whether you support the proposal, and what it should prioritise. The council suggests three changes:

  • a rethink of the proposed funding allocations
  • a longer transition period, in line with previous funding reviews
  • a greater share of locally raised income kept by councils

A paper copy is available from consultation@richmond.gov.uk or on 020 8891 1411, quoting “Sustainable Communities Act Consultation”.

What it means for you

Nothing changes to your bill or your services today. But the council’s own forecasts point to a hard choice within a few years, between deeper cuts, higher charges and drawing reserves down to nothing. Its gap forecasts already assume the largest council tax rise the government allows. What you pay in each band now is on our Richmond council tax bands page.

If you want a say on the council’s case to the government, the consultation is the route, and it has two weeks left to run.

Sources