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

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

Housing Ombudsman

Housing Ombudsman Service
£130,095 per annum, negotiable based on experience.
The Housing Ombudsman Service allows colleagues to choose if they wish to work in the London office, from home or a hybrid of the two London (Greater)
Recuriter: Housing Ombudsman Service

SEND Engagement Facilitator

Essex County Council
£25821.00 - £30377.00 per annum
SEND Engagement FacilitatorFixed Term, Full Time£25,821 to £30,377 per annumLocation
Recuriter: Essex County Council

Senior Key Worker - Young Carers

Essex County Council
£25821.00 - £30377.00 per annum
Senior Key Worker - Young CarersPermanent, Full Time£25,821 to £30,377 per annumLocation
Recuriter: Essex County Council

CIPFA Trainee

Oxfordshire County Council
£31537 - £40777
You’re eager to build a career in public finance and committed to completing the CIPFA Level 7 Apprenticeship. You meet the eligibility criteria (including being under 22 years of age before studies commence, based on central government funding criteria Oxford
Recuriter: Oxfordshire County Council
Linkedin Banner