Earlier projections suggested the authority could have faced reductions of up to £45 million per year which is over 90% of its current funding.
But the council says the latest Policy Statement indicates it will now likely to fall into the category that would receive a cash-flat settlement over the next three years.
That’s a move councillors say means core funding would not fall during the transition to the new system.
The Council has been pressing Ministers and officials to ensure that funding changes reflect the real pressures facing outer London boroughs and the needs of Richmond residents.
Richmond Council last week said it had commenced the process for legal action against the government’s proposed Fair Funding reforms.
The Council said it would have been the worst-hit in the entire country by the government’s reforms.
Bosses wrote to the Secretary of State for Housing, Communities and Local Government, under the protocol for judicial review to challenge the consultation process and subsequent decision of the Fair Funding Review 2.0.
Councillor Gareth Roberts, Leader of Richmond Council said: “All councils should get a fair funding deal. This review risks punishing councils like Richmond for running its finances responsibly.
“We cannot stand by while our community faces potentially devastating cuts to the services people rely on. We’re fighting for a funding deal that recognises the real needs of our residents. This legal action is about defending our values and making sure every voice in Richmond is heard.”
