The Labour Government's plans for local government funding would see a £24.7m cut in Greenwich Council's funding over the next three years, according to analysis by London Councils, leading to Greenwich Labour councillors accused of "shameless hypocrisy" for their silence on the plans.
The Government's so-called 'Fair Funding 2.0' proposals include a dramatic shift in funding away from 'inner London' boroughs including Greenwich, resulting in a £24.7m cut in cash terms between 2026/27 and 2028/29 financial years - with an additional potential 'cliff edge' threatening even further cuts beyond 2029. The figure contrasts with the £55m increase in governmetn funding for Greewnich Council under the previous Conservative government in the last Parliamentar between 2019 and 2024 - an increase that at the time Labour councillors in Greenwich argued "falls short of what residents deserve."
Despite this, Greenwich Labour has been silent on the Labour Government's planned cuts - only first revealing the modelling when pressed on the issue by Conservative councillors at the Town Hall.
The Government's planned cuts come at a time when Labour-run Greenwich Council is struggling to deliver its own existing round of efficiency savings, with £9.1 million non-delivery now expected and the Councilo's budget £15m overspend just three months into the 2025/26 finanical year. This week the Labour Cabinet was warned that "the council will needto take in year measures to reduce /mitigate the risks" to the Council's financial position - but no details of these additional "in year" cuts have yet been forthcoming.
Councillor Matt Hartley, Leader of Greenwich Conservatives, said: "After years of dither and delay, Labour councillors have only belatedly woken up to the scale of waste and inefficiency that needs to be removed from the Greenwich Council's budget. They've been warned about this by the Conservative Opposition councillors for years - and instead of doing the right thing, they've played partisan politics at every turn.
"With Greenwich Labour struggling to deliver even the current round of efficiency savings, the Council's leadership needs to urgently get a grip or their financial crisis is only going to escalate.
"Now it has been confirmed that the Labour government is planning to cut £25 million from Greenwich Council's budget in the next 3 years - and yet the Labour councillors here in Greenwich are silent about it. The truth is they've been badly caught out, and its council taxpayers across Greenwich who will pay the price for ever higher taxes and reduced services in the future."
Opposition Conservative councillors have put forward a motion for September's Greenwich Council meeting calling for urgent action to stabilise the Council's financial position (see below).
Read more about the proposed cuts on Greenwich Wire and MyLondon.
Greenwich Conservative Opposition Group
Motion for Full Council, September 2025
Impact of Government funding cuts to Greenwich Council 2026-29
Proposer: Councillor Matt Hartley
Seconder: Councillor Charlie Davis
This Council notes with concern that, based on London Councils analysis, it is forecasted the Royal Borough of Greenwich could see a £24.7m cut in central Government funding (in cash terms) over the next 3 years under the Government’s so-called ‘Fair Funding 2.0’ proposals.
Council notes that while central government funding for Greenwich Council was actually RISING in the last Parliament under the previous government - increasing by £55m between 2019 and 2024 - the administration launched a public campaign against the local government financial settlement, arguing in an open letter to the then Prime Minister that “the current funding settlement for our council falls short of what residents deserve”.
Council notes, however, that now that the current Government is proposing to CUT funding for Greenwich Council by £24.7m over the remainder of this Parliament, the administration has launched no such public campaign against the plans.
Council further notes with concern the under-performance of the administration’s existing round of Medium Term Financial Strategy (MTFS) efficiency savings, with £9.1m non-delivery now expected and the Council’s budget £15m overspent just three months into the 2025/26 financial year. Council notes that this has led to the Cabinet being warned this month that “the council will need to take in year measures to reduce / mitigate the risks” to the Council’s financial position.
Council therefore requests that the executive:
- Uses every means available to the administration to lobby central Government, both publicly and privately, to adjust its Fair Funding 2.0 proposals to ensure Greenwich Council’s central government funding is not cut
- Publishes, by the end of October 2025, details of the “in year measures” that the administration intends to bring forward to stabilise the Council’s finances in the current 2025/26 financial year, for public and councillor scrutiny
- Commits, given the urgency of the council’s financial situation, to publishing a new monthly summary of the Cabinet’s performance in delivering planned MTFS savings for public and councillor scrutiny (in addition to the existing quarterly budget monitor)
