SIGOMA responds to counterintuitive IMD changes
Posted on October 31, 2025
On the day of the release of the updated IMD figures (Index of Multiple Deprivation), our Chair, Cllr Sir Stephen Houghton, responded to the update.
Analysis conducted by The Times revealed that some of the wealthiest places in England had seen the biggest increases in deprivation due to the inclusion of housing costs in the IMD update.
Our Chair issued a response to this counterintuitive change:
'Sir Stephen Houghton, the Labour leader of Barnsley council and chairman of Sigoma, which represents 50 urban authorities outside London, said: “Early analysis shows this is very disappointing and will move money from the Midlands and the North into London as predicted.
“We will continue to press the government to recognise needs in our areas and the disadvantage we have suffered for 15 years and the political consequences if it fails to do so.”'
You can read more here.
The LGC also reported our concerns:
'A membership body for urban councils is accusing the government of “skewing” the funding formula in favour of London and the home counties away from more disadvantaged areas by including housing costs as an indication of deprivation.
The Special Interest Group of Municipal Authorities (Sigoma) is criticising this “last-minute” alternation to the index of multiple deprivation used for the fair funding review as a way of transferring funding from the north and the Midlands to London and the south east because of the high house values in these areas.
Sigoma found that of the 10 councils that have “worsened” deprivation statistics following this change, eight are in the capital, including Westminster LBC that sets one of the lowest council tax rates in the country while areas in the north and the Midlands have “improved” due to lower housing costs.
The body represents 50 post-industrial local authorities across the north, Midlands and the south coast that have been affected by this “skewing” of the data that will determine funding for the next financial year. Sigoma claims that housing costs are lower in these areas due to the lower house values, economic activity and property wealth, particularly in former mining communities, which is why these communities need more funding not less.
Including housing costs as an indicator of deprivation “would be perverse as higher housing costs reflect buoyant house prices, higher levels of economic activity and extremely high levels of housing wealth” and would allow councils in these areas to continue their lower council tax rates thus worsening the outcome for other urban areas, Sigoma claims.
Chair of Sigoma and leader of Barnsley MBC Sir Steve Houghton (Lab) warned that if the government fails to “recognise the deep-rooted needs in our communities and the disadvantage we’ve faced for over 15 years”, there will be “political consequences of ignoring these areas”.'
You can read more here.