Fair Funding

This week, SIGOMA launched "Towards a Fairer Future" in Parliament alongside MPs and Ministers. 

This documents sets out what has gone wrong with the local government finance system and how it can be fixed. 

The local government finance system is not fit for purpose. The most deprived councils have seen the biggest cuts and disproportioned increases in demand. There is a significant and growing gap between the outcomes of the most and least deprived communities. 

The funding review launched by the government is long-overdue and presents a huge opportunity. 

The document welcomes the steps that have been taken so far by the government especially the Recovery Grant, which was an important first step in repairing the relationship between need and funding levels that broke down during austerity. 

There are 4 further key asks that can deliver a fair funding system that will allow councils in the most deprived areas to invest in their communities while supporting the government missions. These are:

• Commit to deprivation as a key factor in the formula review
• Commit to regular resets to ensure need is prioritised
• Limit transitional arrangements 3-year period
• Commit to full equalisation of Council Tax receipts

These changes will deliver a significant uplift in funding for the most deprived areas and should be delivered along side more more sustainable investment into the sector.