Title

FINANCE

Fair Funding 2.0 next steps: Turning promises into action for deprived communities

Full council tax equalisation and the use of deprivation indices mark a critical shift toward needs-based funding for local authorities, says Sir Stephen Houghton.

(c) Vitalii Vodolazskyi / Shutterstock.com

The government's Fair Funding 2.0 is a crucial opportunity to fix the broken funding system, and we were pleased to submit our consultation response and contribute to this landmark moment in local government finance.

SIGOMA represents many of the most deprived urban authorities in England, so the inclusion of our campaign ask to fully equalise Council Tax was very welcome. This means that the government will fully account for an area's ability to raise Council Tax: deprived areas will no longer be disadvantaged by their inability to raise as much money locally as more affluent areas, as equalisation will ensure that they get a higher proportion of grant to pay for vital services.

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