Mark Whitehead 26 April 2023

Poorest councils suffer cuts three times higher than richest

Poorest councils suffer cuts three times higher than richest image
Image: Becky Stares / Shutterstock.com.

The poorest councils have suffered cuts in Government funding nearly three times higher than the richest, according to a research group.

The Special Interest Group of Municipal Authorities (SIGOMA) says that on average the most deprived councils in England have received a 28.3% cut in the last 13 years while the richest 10 have received only 10.1% reduction.

It is calling for fundamental reform of Government funding to create a fairer system and fulfil the ‘levelling up’ agenda.

It says structures that support the fair distribution of funds raised through taxation have been replaced by ones that tend to reward high-value housing stock and a large and thriving business rate base.

Failure to reset business rates growth has unfairly disadvantaged the poorest councils over the last three years.

The group’s chair Sir Stephen Houghton, leader of Barnsley Council, said: ‘The system needs serious reform.

‘Reversing the trends will not happen overnight and we need to introduce a new model that reforms local Government finance to create a fairer funding system.’

‘The poorest areas have seen the biggest cuts and for “levelling up” to mean anything the Government should be looking to reverse these cuts and create a funding formula that funding according to council needs.’

SIGN UP
For your free daily news bulletin
Highways jobs

Transport and Major Work Manager

Slough Borough Council
£54,556 to £60,085 per year Inclusive of Local Weighting Allowance of £1096
Drive the future of transport and infrastructure in Slough Slough, Berkshire
Recuriter: Slough Borough Council

Head of Constitutional and Electoral Services

Redbridge London Borough Council
£89,037 - £92,538
This role will place you at the centre of political decision-making and governance in the Council. Redbridge, London (Greater)
Recuriter: Redbridge London Borough Council

Head of Community Safety

Redbridge London Borough Council
Up to £103,893 inc. market supplement
Redbridge is one of the most dynamic and diverse boroughs in London. Redbridge, London (Greater)
Recuriter: Redbridge London Borough Council

Head of Highways & Transport

Redbridge London Borough Council
£89,037 - £92,538
There is a lot going on in Redbridge. Redbridge, London (Greater)
Recuriter: Redbridge London Borough Council

Local Audit Office - Controller of Local Audit

Ministry for Housing, Communities and Local Government
£200,000 - £220,000
The Government is taking bold steps to overhaul the local audit system, leading the most transformational reform programme in over a decade Birmingham, Leeds
Recuriter: Ministry for Housing, Communities and Local Government
Linkedin Banner