Richmond council funding cuts threaten local infrastructure as housing targets rise

Richmond council funding faces the steepest reduction of any London borough in 2026, with core government support dropping by nearly 60 per cent just as ministers demand the delivery of thousands more homes. The timing puts the council in an impossible position: proposals to slash developer contributions by up to 80 per cent would drain the very funds needed to build the schools, GP surgeries, and transport links that new residents require. It is a precedent already playing out in other boroughs, where infrastructure has lagged years behind the homes that needed it.

The proposals come as councils across London are being asked to deliver more homes, while Richmond faces unprecedented financial pressure.

What the funding cuts mean for Richmond

The numbers tell a stark story.

Richmond Council is warning that government plans to give developers up to 80 per cent relief from the Community Infrastructure Levy (CIL) could leave the borough with significantly less money to invest in the infrastructure needed to support new development. At the same time, the council’s core government funding is being cut by nearly 60 per cent, the biggest percentage reduction of any London borough. These two pressures arrive together: more homes to build, less money to support the communities that will live in them. The CIL currently funds everything from road improvements and school expansions to health facilities and green space enhancements. If the government’s proposals go ahead, Richmond would collect a fraction of what it needs from each new development, while also managing on a drastically reduced central budget.

The squeeze is already forcing conversations about what the borough can realistically maintain, let alone improve.

How developer contributions fund local services

Every new home creates demand.

When a development of 100 flats goes up in Twickenham or Barnes, those residents need school places, GP appointments, bus routes, waste collection, and access to parks. The Community Infrastructure Levy is designed to capture a proportion of the land value uplift when planning permission is granted, and that money flows directly to councils to fund the services and infrastructure those new residents will use. In Richmond, CIL has paid for road safety improvements, cycling infrastructure, library refurbishments, and green space projects. The proposed relief would reduce those contributions by up to 80 per cent, meaning developers would pay far less while the demand on local services remains exactly the same. The government argues the relief will make housing more affordable and speed up delivery, but councils point out that homes without adequate infrastructure create their own problems: overcrowded schools, longer NHS waiting times, and increased traffic congestion.

The relief may build homes faster, but it leaves councils scrambling to fund the services those homes depend on.

How we got here

September 2026

Government proposes up to 80% relief on Community Infrastructure Levy for developers

September 2026

Richmond Council confirms nearly 60% cut to core government funding, the steepest reduction of any London borough

September 2026

Richmond Council formally responds to government consultation, warning of infrastructure funding crisis

Consider a recent development along the riverside in Twickenham: 150 new homes bringing roughly 300 residents. Under current CIL rules, the developer would contribute funding for local road improvements, school capacity, and GP services. Under the proposed relief, that contribution could shrink by 80 per cent, leaving Richmond Council to find alternative funds or accept that those services will be stretched thinner.

The wider context: Richmond and London housing targets

Richmond is being asked to build more, not less.

The government has set ambitious housing targets for every London borough, and Richmond is expected to deliver thousands of new homes over the coming years. The council has broadly supported the principle of building more housing, particularly affordable housing, but has repeatedly stressed that infrastructure must keep pace with development.

Without adequate investment, we risk building homes that place unsustainable pressure on our schools, health services, and transport networks.

The concern is not theoretical. Other boroughs that saw rapid housing growth in the past decade have struggled with school place shortages, GP capacity, and public transport overcrowding, precisely because infrastructure funding did not match the pace of development. Richmond’s warning to government is that cutting CIL relief while also slashing core funding creates a perfect storm: more demand, less capacity, and no means to bridge the gap. The council has formally responded to the government consultation urging ministers to protect infrastructure investment.

The outcome of that consultation will determine whether Richmond can build the homes it needs while still serving the community it already has.

What this means for you

If you live in Richmond, this funding squeeze will affect the quality and availability of local services over the next few years. The most immediate impact will be on infrastructure tied to new developments: roads, schools, health centres, and public spaces. If you are involved in local planning or community groups, now is the time to make your voice heard. Richmond Council has responded to the government consultation, but residents can also submit comments directly to government consultations on planning and infrastructure policy. You can find details of open consultations on the government’s planning portal. Keep an eye on council planning committee meetings, where individual developments and their infrastructure contributions are debated. If you rely on local schools, GP services, or public transport, it is worth staying informed about how future developments in your area will be funded and what mitigation measures are planned. The council publishes infrastructure delivery plans alongside major planning applications, and these documents set out what will be provided and when. Your input at consultation stage carries weight, particularly if you can point to specific local needs that might otherwise be overlooked.

Richmond faces a difficult few years as it balances housing targets with shrinking budgets and reduced developer contributions. The decisions made in 2026 will shape the borough’s capacity to serve both current and future residents, and local voices will be critical in ensuring infrastructure keeps pace with growth.

The Community Infrastructure Levy, in plain terms, is the money developers pay to councils when they build new homes. That money funds your local roads, schools, health centres, and parks. The government now wants to let developers pay just 20 pence in every pound they currently contribute.

Frequently asked questions

What is the Community Infrastructure Levy?

The Community Infrastructure Levy (CIL) is a charge that councils can apply to new developments to help fund the infrastructure needed to support growth. In Richmond, CIL contributions have funded road improvements, school expansions, cycling infrastructure, library refurbishments, and green space projects. The levy is calculated based on the size and type of development, and the money goes directly to the council to spend on local priorities.

Why is Richmond's government funding being cut by 60 per cent?

The government has redistributed core funding to local authorities based on a new formula that takes into account population, deprivation, and service demand. Richmond has been assessed as having lower relative need compared to other boroughs, resulting in the steepest percentage cut of any London borough. The council argues that the formula does not adequately account for the cost of delivering services in Richmond or the infrastructure demands created by new housing targets.

Will this affect new housing developments in Richmond?

The proposals could make it easier for developers to build homes, because they would pay less in infrastructure contributions. However, the concern is that homes will be built without the corresponding investment in schools, health services, roads, and public transport. Richmond Council has warned that this could lead to overcrowded schools, longer NHS waiting times, and increased traffic congestion unless alternative funding is found.

How can I find out about planning applications in my area?

You can search for planning applications on the Richmond Council website using your postcode or street name. The council publishes details of all applications, including the proposed development, any infrastructure contributions, and the consultation period during which you can submit comments. Major applications are also discussed at planning committee meetings, which are open to the public and livestreamed online.

What happens if the government goes ahead with the CIL relief?

If the proposals are implemented, Richmond Council will receive significantly less money from new developments to invest in local infrastructure. The council would need to find alternative funding sources, prioritise spending more strictly, or accept that some infrastructure projects will be delayed or scaled back. The final decision will depend on the outcome of the government consultation and any subsequent legislation.

Useful resources

• https://www.richmond.gov.uk/services/planning
• https://www.gov.uk/government/consultations