Now that budgets are set and elections over, it is time for both politicians and officers to focus on two major proposed changes to local government finance: the CLG led Resource Review on how to relocalise business rates; and the abolition of Council Tax Benefit, to be replaced by local schemes.

Both will start in April 2013 with varying impacts across local government and the other authorities funded from business rates and council tax.  Diverse local economies across the country are one driver of the different responses emerging. The local government resource review contains real opportunities (see earlier LGiU blog) and aims to fulfil the Coalition agreement promise of “radical devolution of power and greater financial autonomy to local government”.  The other is also a radical devolution, requiring the creation of new local council tax rebate schemes following the CSR decision to cut spending on Council Tax Benefit by 10% from 2013 and its abolition as a national benefit in the Welfare Reform Bill.