The financial position of local authorities in urban areas has ‘worsened’ since the finance settlement last month, warns local government campaign group.
The Special Interest Group of Municipal Authorities (Sigoma) said the finance settlement provided councils with no new funding and warned that ‘the situation has worsened’ over the last month.
Citing the case of Bradford Council, which has warned it will have to issue a section 114 notice unless the Government provides ‘exceptional’ financial support, SIGOMA chair Cllr Sir Stephen Houghton said the ‘financial viability of the whole sector is at risk.’
He added: ‘We need to get back to needs-based grant distribution which includes taking away business rates retention as soon as possible. In the longer-term we should move to a system based on an independent assessment of needs, away from political interference by Government ministers.’
If this article was of interest, then check out, 'Can local government take much more?', 'Preventing future Section 114 notices' and 'How to fix local government finance'.
