Laura Sharman 23 July 2018

Think tank publishes scorecard for local government financing

A new scorecard assessing the options of funding local government post 2020 has been published by a think tank.

The Local Government Information Unit (LGiU) has launched the Local Finance Scorecard to help kickstart a debate on local government finance.

It outlines the different funding options for local government post 2020, giving each one a score based on feasibility and impact.

Jonathan Carr-West, chief executive of LGiU, said: 'Confidence in the local government finance system is low. Every year we survey council leaders, chief executives, cabinet members for finance and chief finance officers. In 2018, eight out of ten of them told us that the local government finance system in its current form was unsustainable.

'Important changes are happening. Business Rate Retention and the Fairer Funding Review are significant steps towards reforming local government finance; but we believe that to achieve a sustainable system we need a much broader and more radical conversation post 2020.'

The LGiU has called on the Government to provide a formal consultation on all the options for the future of local government funding.

The Ministry of Housing, Communities and Local Government will embed its local authority sustainability tool in its preparations for next year’s Spending Review.

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