County councils have welcomed the Government’s renewed commitment to the needs-based fair funding review.

In his statement on the Local Government Finance Settlement, communities secretary Sajid Javid reaffirmed Whitehall’s commitment to ensure funding reforms would be fair to rural areas.

He said: ‘We are undertaking a Fair Funding Review, to thoroughly consider how to introduce a more up-to-date, a more transparent and fairer needs-assessment formula.’

There were a number of concerns to consider, he said. ‘Foremost among them is the need to make sure the formula works for all local authorities, wherever they are. Rural councils, in particular, have unique needs that have to be met.’

Welcoming Mr Javid’s comments, a spokesperson for the County Councils Network (CCN) said: ‘There has been growing concern about a lack of progress on the needs-based review and Ministers were potentially getting cold feet.

‘However, it is clear that the Government has listened to the concerns of county leaders and MPs, and will follow through with a full review to be completed in time for business rates implementation.

‘We strongly welcome the emphasis placed by Sajid on demographic and rural pressures, which are key cost-drivers that need to be considered.’

‘Government have placed responsibility for developing proposals on the two-tier share with the special interests groups and we are committed to working with DCN with a view to coming to an agreement,’ they continued.

‘However, it is extremely complex and without further analysis of the implications and details on what new responsibilities will be devolved it’s not possible to start detailed negotiations at this stage.’