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

Senior/Principal Regeneration Officer

Fareham Borough Council
£45,465 - £55,379
Our town centre regeneration is moving from planning to delivery, and we're looking for someone who wants to help make regeneration happen. Fareham, Hampshire
Recuriter: Fareham Borough Council

Family Help Team Manager

Gloucestershire County Council
£54,143- £56,293 per annum
This is an exciting opportunity to lead a dedicated team supporting disabled children and young people Gloucestershire
Recuriter: Gloucestershire County Council

Fostering Social Worker

Gloucestershire County Council
£40,444 - £48,738 per annum (pro rata for part-time staff)
This marks an important step in our journey to improve outcomes for our children and young people Gloucestershire
Recuriter: Gloucestershire County Council

Family Help Team Leader (SW)

Gloucestershire County Council
£49,817 - £53,051 per annum
This marks an important step in our journey to improve outcomes for our children and young people Gloucestershire
Recuriter: Gloucestershire County Council

Repairs Operations Manager

Royal Borough of Greenwich
P09 - £71,181 - £74,802
You'll be responsible for leading the delivery of a high-performing, resident-focused repairs service London (Greater)
Recuriter: Royal Borough of Greenwich
Linkedin Banner