Reserves are there to manage risk and give councils breathing space, not to plug permanent gaps.
Ten months ago Richmond Council put its lawyers away. It had threatened the government with a judicial review over a reform of local authority funding that, on its own figures, would have taken as much as £45m a year out of its budget. In November ministers offered a three-year settlement holding the grant flat in cash terms, the projected cut came down to £29m by 2028/29, and the leader, Gareth Roberts, called it a significant improvement.
This week the tone changed. A report to councillors at Richmond Council — the authority for Barnes, Castelnau and Mortlake — shows that the £52m of reserves the borough started this financial year with could fall to £28m by next April, and that the reserves could run out within four years. Even if the government allowed the maximum council tax rise, Richmond says it would still face a funding gap of £19.3m in 2027/28, growing to £30.8m by 2030/31.
The settlement, in other words, bought time rather than solving anything. The underlying reform still removes £29m a year from Richmond's core funding by 2028/29, around 58 per cent of the total, which the council describes as the largest percentage cut of any London borough. That comparison comes from the council itself, and we have not been able to test it against an independent analysis of all 32 boroughs.
Roberts put the arithmetic plainly: reserves "are there to manage risk and give councils breathing space, not to plug permanent gaps". His deputy, Jim Millard, said the figures were stark and that without a fairer deal "services for residents will suffer".
That is the part that reaches SW13 and SW14. The council is fast-tracking £39m of savings and has launched a consultation asking residents to back a formal proposal to government to rethink the funding formula, extend the transition period and let councils keep more of the money they raise locally. It has not said which services the £39m will come out of, nor published where the consultation lives or when it closes — awkward, for a council asking residents to sign up to its case.
A borough that runs its reserves down to £28m in a single year has one good year left and no second one. The figure worth watching is not the £30.8m gap in 2030 but the £39m of savings being brought forward now: which libraries, parks, street services and care budgets in Barnes, Castelnau and Mortlake carry it, and whether residents see that list before they are asked to endorse the council's fight.
- Reserves projected to fall from £52m to £28m during 2026/27
- Council says reserves could run out within four years
- Funding gap of £19.3m forecast for 2027/28 rising to £30.8m by 2030/31, even at maximum council tax
- Government reform to cut Richmond's core annual funding by £29m by 2028/29, ~58% of core allocation
- Council says this is the largest percentage cut of any London borough (unverified independently)
- Council dropped a threatened judicial review in November 2025 after a transitional cash-flat settlement, then called it 'a significant improvement'
- Council fast-tracking £39m of savings and has launched a consultation seeking resident backing
- Capital programme revised to £233.9m over six years with potential borrowing of £124.7m
Every factual claim in this story is linked to the evidence behind it. Where the newsroom has added judgement or framing, it is listed separately. Sources accessed 26 September 2026.
- Financial reserves warning - Richmond Council (council)
- Transitional funding protections secured (council)
- Richmond Council set to avoid severe funding cuts after government shift (media)
- Council urges residents to support fight against cuts in government funding (media)
Claim by claim (10 facts, 11 editorial judgements)
- Richmond Council reserves are projected to fall from £52m at the start of 2026/27 to £28m by the end of the financial year — council, 2026-09-25“A report discussed by the Finance, Policy and Resources Committee yesterday shows that reserves of £52 million at the start of 2026/27 could fall to £28 million by the end of the financial year”
- These reserves could run out within the next four years — council, 2026-09-25“These reserves could run out within the next four years.”
- Even with maximum permitted council tax rises, Richmond faces a funding gap of £19.3m in 2027/28, rising to £30.8m by 2030/31 — council, 2026-09-25“Even if the government allowed the maximum Council Tax increase, Richmond would have a funding gap of £19.3 million in 2027/28, rising to £30.8 million by 2030/31.”
- Government funding reforms will cut Richmond's core annual funding by £29m by 2028/29, around 58% of core funding, which the council says is the largest percentage cut of any London borough — council, 2026-09-25“The shortfall follows government reforms that would cut Richmond's annual core funding by £29 million by 2028/29. This is around 58% of its core funding allocation and the largest percentage cut in Lo”
- Council leader Gareth Roberts said reserves are there to manage risk, not plug permanent gaps — direct_statement, 2026-09-25“reserves are there to manage risk and give councils breathing space, not to plug permanent gaps”
- Deputy leader Jim Millard said the figures are stark and warned services for residents will suffer — direct_statement, 2026-09-25“the figures are stark ... services for residents will suffer”
- The council is fast-tracking £39m of savings and has launched a consultation seeking resident backing for a Sustainable Communities Act proposal to government — council, 2026-09-25“fast-tracking £39 million of savings ... launched a consultation”
- In November 2025 the council dropped a threatened judicial review after government offered a three-year cash-flat transitional settlement, reducing the feared cut from up to £45m to £29m by 2028/29 — council, 2025-12-01“cuts brought down to £9 million next year and £29 million by 2028/29 (compared to the previous projection of £12 million to £45 million)”
- Roberts called the transitional settlement 'a significant improvement' in November 2025 — media, 2025-11-24“a significant improvement”
- A separate capital programme review sets a revised six-year capital programme of £233.9m with a potential borrowing requirement of £124.7m — council, 2026-09-25“revised six-year capital programme of £233.9 million with a potential borrowing requirement of £124.7 million”
- Judgement: The council has not published where residents can respond to the consultation or its closing date
- Judgement: Ten months ago Richmond Council put its lawyers away (framing of the dropped judicial review).
- Judgement: This week the tone changed.
- Judgement: The settlement, in other words, bought time rather than solving anything.
- Judgement: That comparison comes from the council itself, and we have not been able to test it against an independent analysis of all 32 boroughs.
- Judgement: Roberts put the arithmetic plainly.
- Judgement: That is the part that reaches SW13 and SW14.
- Judgement: It has not said which services the £39m will come out of, nor published where the consultation lives or when it closes — awkward, for a council asking residents to sign up to its case.
- Judgement: A borough that runs its reserves down to £28m in a single year has one good year left and no second one.
- Judgement: The figure worth watching is not the £30.8m gap in 2030 but the £39m of savings being brought forward now: which libraries, parks, street services and care budgets in Barnes, Castelnau and Mortlake carry it, and whether residents see that list before they are asked to endorse the council's fight.
- Judgement: Reserves are not a budget, and the borough is now spending them like one.