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.’

What’s happening inside the LGPS? image

What’s happening inside the LGPS?

Get the most informed take on the challenges and opportunities that substantial reform will bring at this year’s PLSA Local Authority Conference.
SIGN UP
For your free daily news bulletin
Highways jobs

Head of Regeneration

Redbridge London Borough Council
£96,861 - £100,671
Right now, we’re in the midst of ambitious regeneration plans that will transform our borough for generations to come Redbridge, London (Greater)
Recuriter: Redbridge London Borough Council

Head of Leisure & Culture

Redbridge London Borough Council
£96,861 - £100,671
Our borough’s Leisure and Culture provision is integral to making Redbridge a great place to live Redbridge, London (Greater)
Recuriter: Redbridge London Borough Council

Head of Leader’s Office

Redbridge London Borough Council
£59,739 - £63,159
This role will see you working at the very centre of the Council’s work Redbridge, London (Greater)
Recuriter: Redbridge London Borough Council

Head of Operational Services

South Derbyshire District Council
£73,051 to £75,342
Ready to shape the future of a thriving district? Derbyshire
Recuriter: South Derbyshire District Council

Director of Family Help and Safeguarding

Reading Borough Council
£105,836 - £121,235
Lead Transformational and Improvement Change for Children’s Services Reading, Berkshire
Recuriter: Reading Borough Council
Linkedin Banner