Councils let down by funding system

In recent years, councils and their residents have been let down by an unsound funding system, which has resulted in some councils increasing their reserves while others struggle to deliver vital services. 

This was not only an inefficient use of public finances, but it disproportionately negatively impacted those in greatest need. 

The new, fairer system will match funding with need, while, overall, local government is expected to receive a real-term increase in core spending power of around 3.2 per cent, with no council seeing a reduction. 

“The new, fairer system will match funding with need” 

There is no quick fix to overcome the deep-seated problems in local government finance, but it is clear that this government is taking steps to fix the foundations for the long term. 

The decision to target support is an example of a government unafraid to make strong, measured decisions and prioritise looking out for those who need it most.

I was particularly heartened to see that local leaders will be extensively consulted on this reform, demonstrating the Government’s understanding of our role as a genuine partner to deliver change in our country. 

We all know that reform is well overdue and that this Labour Government is taking steps to clean up the mess left by the Conservatives. I look forward to further productive partnership working in the future.

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