Laura Sharman 24 September 2018

Government accused of allocating council funding by ‘political convenience’

The Government has been accused of adjusting financial settlements in favour of the wealthiest authorities by a coalition of urban councils.

SIGOMA is calling on the Government to drop plans to allocate £153m to some of the country’s wealthiest authorities in this year’s Local Government Finance Settlement through the negative revenue support grant.

It warned that deprived councils outside of London will have lost £1bn since 2010 due to this proposal and other similar policy decisions.

Cllr Stephen Houghton, leader of Barnsley Council and head of the group, said: ‘These latest proposals are the final straw in a pattern of policymaking that has consistently adjusted settlements in favour of some of the wealthiest parts of the country and forced our councils to cut further and faster than most.

‘Local government finance isn’t the most exciting subject, so these issues are easily swept under the rug due to the technical jargon that surrounds them.’

He highlighted the fact that areas such as Knowsley and South Tyneside will receive no funding from this change despite seeing their core funding cut by 30%. However, Surrey will receive £27m from the proposal even though its core funding has only been cut by 4%.

Cllr Houghton added: ‘We want to see the Government allocate any additional money to local government based on need, not political convenience. The £153m they are proposing to gift to wealthy authorities this time has the technical guise ‘elimination of negative revenue support grant’ but there is no logic to it and it is going largely where it is least needed.

'It is £153m they could have allocated to support chronically underfunded children’s services, rather than playing favourites.'

An MHCLG spokesman said: 'Although the Government has a preferred option for resolving this issue, we recognise there are a range of views across the sector on the issue of Negative RSG.

'The consultation has laid out in detail alternative approaches we have considered and we have welcomed all representations on this issue. We will closely consider the responses received.'

SIGN UP
For your free daily news bulletin
Highways jobs

Occupational Therapist - Adult Social Care

Essex County Council
£37185 - £50081 per annum
Register your interest here to be notified of upcoming Occupational Therapist opportunities within Essex County Council's Adult Social Care services. England, Essex, Chelmsford
Recuriter: Essex County Council

Adults Social Worker - West Essex

Essex County Council
£37185 - £50018 per annum
Register your interest here to be notified of upcoming Social Worker opportunities within Essex County Council's Adult Social Care services in West E England, Essex, Harlow
Recuriter: Essex County Council

Principal Finance Officer (HRA)

London Borough of Richmond upon Thames and London Borough of Wandsworth
£43,545 - £52,767 per annum
We are seeking a highly motivated Principal Finance Officer to join our Housing finance team in the Resident Services department. As the Principal Finance Officer, you will be responsible for providing a comprehensive financial service to the department, Wandsworth, London
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth

Electrician

North Yorkshire Council
£34,434 to £42,839 per annum
We’re on the lookout for skilled Electricians who are passionate about making a difference! Harrogate, North Yorkshire
Recuriter: North Yorkshire Council

Electrician

North Yorkshire Council
£34,434 to £42,839 per annum
We’re on the lookout for skilled Electricians who are passionate about making a difference! Richmond, North Yorkshire
Recuriter: North Yorkshire Council
Linkedin Banner