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

Head of Democratic Services, Elections & Monitoring Officer

Harborough District Council
Grade 12 £67,236 – £71,223 plus £3000pa Statutory Officer Allowance
We are looking for an accomplished and proactive leader for our vacant post of Head of Democratic Services & Elections Market Harborough, Leicestershire
Recuriter: Harborough District Council

Social Worker - Family Support and Safeguarding - Bicester Banbury

Oxfordshire County Council
£37035 - £47754
You will manage a caseload tailored to your experience, ensuring that children’s and their families’ voices are heard, and their needs are met. You will work with families using the FSP Workbook modules, and a strengths-based approach, ensuring the As Bicester
Recuriter: Oxfordshire County Council

Executive Director of Resources & Governance (S151 Officer)

Basildon Borough Council
Up to £146,245
Together, we lead. Together, we deliver. Together, we transform. Basildon, Essex
Recuriter: Basildon Borough Council

Executive Director of Homes, Communities & Environment

Basildon Borough Council
Up to £146,245
Together, we lead. Together, we deliver. Together, we transform. Basildon, Essex
Recuriter: Basildon Borough Council

Executive Director of Strategy, People & Transformation

Basildon Borough Council
Up to £146,245
Together, we lead. Together, we deliver. Together, we transform. Basildon, Essex
Recuriter: Basildon Borough Council
Linkedin Banner