Ellie Ames 09 December 2024

Lack of clarity on reform ‘risks misleading councils’

Lack of clarity on reform ‘risks misleading councils’ image
Image: Brian A Jackson / Shutterstock.com

A leading financial think-tank has warned that the Government risks ‘misleading’ local authorities if it does not provide more clarity on its plans to reform funding.

A new report by the Institute for Fiscal Studies (IFS) concludes the Government must be much clearer on both its expectations of local public services and its objectives for reform – or risk undermining its efforts.

The think-tank said assessments of councils’ spending needs and their ability to raise revenue must be updated to inform a new system for allocating central government funding.

The IFS said current allocations were too often ‘essentially arbitrary’, being no longer reflective of areas’ populations or other socio-economic characteristics.

Its new report proposes that an independent body advises on local government funding and its distribution, and floats the idea of legislation that requires the Government to provide sufficient funding for statutory services.

The think-tank also found that ‘the evidence that devolution boosts economic performance is less strong than sometimes claimed’.

IFS associate director David Phillips said: ‘The technical details of the reforms will matter.

‘But what matters most is a clear articulation of what services the UK government expects local government in England to be able to provide, and its objectives for a reformed system – including the extent to which it prioritises redistribution to poorer areas, versus financial incentives for growth.’

SIGN UP
For your free daily news bulletin
Highways jobs

Head of Operations & Business Development - Amphora Colchester

Essex County Council
Up to £60000.0000 per annum
Head of Operations & Business Development - Amphora Colchester Colchester AmphoraSalary
Recuriter: Essex County Council

Technical Assistant

Essex County Council
Up to £25959.0000 per annum
Technical AssistantPermanent, Full Time£25,959 per annumLocation
Recuriter: Essex County Council

Assistant Director of Culture, Growth and Infrastructure

City of York Council
£86,537 – £95,898 plus benefits and relocation support
This is a new, pivotal and exciting opportunity for an inspiring leader to help shape York's future prosperity... West Offices York (minimum 3 days per week) / Hybrid working
Recuriter: City of York Council

Adults Social Worker - Early Help & Wellbeing (South Essex)

Essex County Council
£36124 - £51834 per annum + Flexible Working, Hybrid Working
This advert is open to Experienced and Newly Qualified Social Worker's (NQSW) with relevant experience in Mental Health. The starting salary for a NQ England, Essex, Basildon
Recuriter: Essex County Council

Part-Time Business Support Administrator

Essex County Council
£25959.00 - £28786.00 per annum + Full Time Equivalent
Part-Time Business Support AdministratorFixed Term, Part Time£25,959 - £28,786 Per Annum (Full Time Equivalent) Location
Recuriter: Essex County Council
Linkedin Banner