Westminster Council to cut over 500 jobs to address government funding reduction

Westminster City Council is cutting more than 500 jobs from its workforce as it attempts to plug a shortfall created by the Government’s Fair Funding reforms.

The flagship Tory authority revealed the reduction in headcount at a staff-wide meeting on Tuesday 20 October, led by chief executive Stuart Love. The cuts, which will see 520 roles made redundant from a total of 3,720, were described as “difficult” by Cllr Paul Fisher, cabinet member for value for money and finance.

He added, though, that taking action now “will pay dividends in the years ahead”.

“The focus for these reductions is on management roles and not front-line posts,” Cllr Fisher said. “Westminster needs to protect taxpayer money, become leaner and look to more commercial opportunities to generate revenue.”

Westminster Council is one of several Inner London authorities to see their funding slashed under the Government reforms. The scheme is intended to redirect money to councils deemed to be the most in-need, with some in the capital, such as Enfield and Croydon, to see significant uplifts.

Westminster, which is facing a £100mn loss in grant funding over the next four years, has said it would need to increase council tax by 200 per cent to avoid cuts to spending.

The authority launched a consultation exercise this summer seeking feedback on what services residents most want protecting.

It is also consulting on potential changes to its council tax support scheme (CTS), which currently offers qualifying residents 100 per cent council tax relief.

Other councils have aired potentially major tax hikes, with Wandsworth saying an increase of 94 per cent may be necessary and Hammersmith and Fulham as high as 150 per cent.

Westminster, Wandsworth and Kensington and Chelsea, all Tory councils, are planning to formally challenge the Government reforms under the Sustainable Communities Act. The City of London Corporation has also said it will consider an appeal. Hammersmith and Fulham Council decided against, having taken legal advice.

Westminster’s planned job cuts, equivalent to 14 per cent of its total workforce, reflect the extent to which the changes are to impact councils seeing their funding hit.

The local authority has said the reductions will save £29mn in 2026/27, with a further £16mn coming from amending the way the council leases or rents buildings, alongside contract savings.

Further consultation is now to follow, with those leaving the council to do so between April and December next year.

Cllr Fisher said: “By increased use of technology like AI and embracing more commercial opportunities we can become more efficient while maintaining the services residents value. There are inevitably going to be further significant savings ahead, but today’s restructure announcement is an important step in ensuring we have the right kind of organisation to serve our communities.”

A Ministry of Housing, Communities and Local Government (MHCLG) spokesperson previously said: “Local authorities decide the level of council tax they wish to set, but we are clear that in doing so they should put taxpayers first.

“We’ve made over £78bn available for council finances next year, with the majority of money un-ringfenced so local leaders can decide how best to spend on their local priorities.

“And we’re fixing an outdated funding system so funding goes where need is greatest, while protecting councils through the transition and ensuring no area faces a cliff edge.”

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