FINANCE

Fair funding: no simple solutions

At best, the fair funding review will bring short-term improvements for some councils while pushing others to the brink – and is ultimately built on shaky foundations, argues Dr Martin Reeves

Reviews of local government finance in this country have a tendency to start with a bang and end with a whimper. Next summer will mark 15 years since the Balance of Funding Review and the start of the Lyons Inquiry. While it would be wrong to say that nothing has changed in the intervening period, the system councils operate within now is not drastically different to the one Sir Michael Lyons was tasked with reviewing.

Let's face it – the fair funding review is not going to be a game-changer either. At best, it might make life a bit more comfortable in the short-term for some councils, while potentially pushing others closer to the cliff edge. That is because we are not starting with the correct question.

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