Ellie Ames 22 January 2024

Finance settlement ‘undermines levelling up’

Finance settlement ‘undermines levelling up’ image
Image: takasu / Shutterstock.com

The local government finance settlement failed to distribute funding fairly, council bosses have argued.

The Special Interest Group of Municipal Authorities (SIGOMA) has published its consultation response to the provisional settlement, which it said failed to direct funding to the most deprived authorities.

While the Government announced an average 6.5% increase in local government core spending power, it failed to highlight that around half of the increase comes from assumed council tax hikes of up to 5%, SIGOMA said.

The group said 20 of the councils it represents, which are some of the most deprived in England, will see an increase in core spending power below the 6.5% average increase.

SIGOMA said that because its councils have a high proportion of lower banded housing, ‘either our average (Band D) tax must be much higher than other parts of the country or that we raise much less from a comparable Band D tax rate’.

SIGOMA chair Stephen Houghton said: ‘Over the last 14 years, the method of allocating funding has been moving further and further from a needs basis, resulting in an ever-growing gap between councils in the richest and poorest areas.

‘The provisional settlement cements that trend and severely undermines any notions of “levelling up”.

‘The final settlement, expected in early February, must be used to provide additional funding for the most in-need places.’

SIGN UP
For your free daily news bulletin
Highways jobs

Executive Director of Place and Customer

Essex County Council
up to £179,404 per annum
Shape the Future of Essex. Drive climate action. Deliver for our communities. Essex
Recuriter: Essex County Council

Director of Social Work and Social Care

Trafford Council
£100,731 to £104,625
You will join a values-driven senior leadership team, providing visible and responsive leadership. Manchester
Recuriter: Trafford Council

Business Support Assistant

Essex County Council
Up to £25081.00 per annum
Business Support AssistantFixed Term, Full Time£25,081 per annumLocation
Recuriter: Essex County Council

Enhanced Senior Social Worker - EDT

Wakefield Council
Grade 10 - Grade 11, 18.5 hours, Permanent
This is an exciting opportunity available for a committed, enthusiastic and driven individual Wakefield, West Yorkshire
Recuriter: Wakefield Council

Enhanced Senior Social Worker - MASH

Wakefield Council
Grade 10 - Grade 11, 37 hours, Permanent
We are an Ofsted GOOD children’s services provider with OUTSTANDING leadership. Wakefield, West Yorkshire
Recuriter: Wakefield Council
Linkedin Banner