FINANCE

Resetting the funding system is vital

SIGOMA’s latest report sets out the path to a more sustainable and equitable local government funding system, says Cllr Sir Stephen Houghton.

(c) Brian A Jackson / Shutterstock.com

Regular readers of my column in The MJ will know that we at SIGOMA have long said that the local government funding system is broken and not fit for purpose. We have criticised the massive cuts to grant funding, increasing reliance on council tax, and reforms to the system that have penalised the most deprived areas while the most affluent areas have been largely protected. 

The system now has a very poor relationship between levels of need and levels of funding – something recognised by many bodies including the Institute for Fiscal Studies. The Government have made steps to begin to fix the system, with the Recovery Grant a very welcome intervention. Our report Towards a Fairer Future, sets out how the Government can build on the Recovery Grant to create a more sustainable and equitable local government funding system. 

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