Local government funding

Local Government Secretary James Brokenshire announced last week the Government’s proposed 2.8 per cent funding increase for local authorities, as reported by PublicFinance.co.uk.

This is, however, dependent on local authorities raising council tax to the highest amount possible and relies on a vote in the House of Commons. In addition, core council tax rates will be able to rise by a further 3 per cent.

Brokenshire also announced a £16 million increase to the rural services grant to recognise the extra costs involved in providing services in rural areas, commenting: ‘There is little doubt that the current funding formula needs fixing – and replacing with a robust straightforward approach where the link between local circumstances and resources allocated is clear.’

Lord Porter, chair of the Local Government Association (LGA), said the funding settlement was ‘disappointing’ and called for ‘further resources for local services’. 

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→ PublicFinance.co.uk - ‘Challenging’ settlement delivers 2.8% more for local government