Laura Sharman 26 October 2016

Research reveals winners and losers in council funding reforms

Funding reforms could affect the quality of council services across the country, with county and metropolitan councils likely to lose significant sums of money by 2020, new research has warned.

The Institute for Fiscal Studies found that allowing councils in England to retain 100% of business rates revenue will help boost the funding of 52 (mostly district) councils by 5% or more by 2017.

However, 119 councils will lose money under the scheme which could lead to ‘greater divergence in council service quality’.

The report found that poorer councils more reliant on grants have cut their spending by 33% on average, compared to 9% by richer councils.

‘The changes to local government finance in England during the 2010s will be truly revolutionary,’ said David Phillips, a senior research economist and an author of the report. ‘We will have moved from a system where equalisation and insurance was paramount, to one with much more emphasis on incentives for growth, but also more financial risk for councils.

‘Along the way there will be lots of tricky policy decisions. And there are big picture questions, such as whether these changes will actually empower councils to deliver more growth, or just burden them with additional revenue and spending risks. The IFS’s new programme will look at both types of issues, in an effort to ensure this revolution is subject to proper public scrutiny.’

The report also found that - excluding education spending - councils are planning to spend 22% less on service provision in 2016-17 than they did in 2009-10.

For an in-depth look at how plans to scrap government funding to local authorities and replace it with business rate revenue are fraught with problems, visit The MJ.

SIGN UP
For your free daily news bulletin
Highways jobs

Youth Support Worker in Training

Essex County Council
£25580.00 - £26924.00 per annum + + 26 Days Leave & local Gov Pension
Youth Support Worker in TrainingPermanent, Full Time£25,580 to £26,924 per annum plus an Outer Fringe allowance of £954 paLocation
Recuriter: Essex County Council

Community Support Worker

Essex County Council
£25395.00 - £32131.00 per annum + + 26 Days Leave & Local Gov Pension
Community Support WorkerPermanent, Full Time£25,395 to £32,131 per annumLocation
Recuriter: Essex County Council

Assistant Director – Public Health (Partnerships & Commissioning)

Leicestershire County Council
£98,673 - £111,60
You will report to our Director of Public Health who is a chief officer of the council reporting to the Chief Executive Leicestershire
Recuriter: Leicestershire County Council

District Youth & Community Worker in Training

Essex County Council
£29606.00 - £36837.00 per annum + Per Annum
District Youth & Community Worker in TrainingPermanent, Full TimeFrom £29,606 to £36,837 per annum depending on experience, plus an Outer Fringe allow England, Essex, Harlow
Recuriter: Essex County Council

Senior Youth Worker (South and Vale)

Oxfordshire County Council
£38220 - £40777
Are you passionate about making a diffe... Oxfordshire
Recuriter: Oxfordshire County Council
Linkedin Banner