FINANCE

Planning for the rates revolution

The Institute for Fiscal Studies (IFS) today launched the first of a series of studies into local government finance and devolution, in a programme whose supporters include The MJ. The IFS’s David Phillips outlines its plans

Ongoing changes to the way councils in England are funded are genuinely revolutionary.

From a system where councils relied largely on central government grants allocated – at least in principle if not always in practice – on the basis of need, by 2020 councils will instead be funded almost entirely by revenues from council tax and business rates. While some redistribution will continue, councils will be much more reliant on their own ability to generate revenues.

Popular articles by David Phillips

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