Mark Conrad 15 August 2023

Local government funding system has 'broken down'

Local government funding system has broken down image
Image: EtiAmmos / Shutterstock.com.

The funding system for local government has ‘broken down’ and what councils currently receive from Whitehall and council tax barely reflects need, a think-tank has warned.

A report on public spending, published by the Institute for Fiscal Studies (IFS) today, effectively casts doubt on the success of the levelling up agenda, which dominated the 2019 General Election campaign.

Researchers found that deprived areas of England receive a lower share of local government and police funding than they are estimated to need while suburban and rural communities receive a lower share of public health funding.

The study – commissioned by The Health Foundation charity, estimated the level of funding for key public services in council areas across England in 2022-23 – including local government, NHS, public health and education cash - and compares relative funding levels to estimates of spending need.

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