Title

FINANCE

The job of delivering a more sustainable council finance system is far from over

The task of delivering a more sustainable local government finance system is – at best – only half done, and four challenges remain, says Paul Honeyben.

(c) Summit Art Creations / Shutterstock

The final Local Government Finance Settlement will go down as the most notable since 2013-14. Councils finally have some medium-term funding certainty and fewer grants to report on.

The aim of more closely aligning core funding with levels of deprivation will be achieved by 2028-29, with funding per capita more strongly correlated with the new Index of Multiple Deprivation. That ministers have been able to deliver these reforms alongside resetting the business rates retention scheme in 12 months should be commended. The system was woefully outdated.

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