Local government finance has risen in political prominence. Communities secretary James Brokenshire hailed this month’s local government finance settlement as paving the way for a ‘fairer, more self-sufficient and resilient future’ for councils.

The settlement deals councils a further £1bn cut to their Government grant funding. While this will in part be offset by increased business rates retention and council tax increases, our Cities Outlook 2019 study of local government austerity highlighted that this will give an advantage to cities in the South East that have stronger economies and more prosperous communities. Poorer northern cities hit by austerity, due to their higher levels of need and greater reliance on grant, will lose out again.