LGA statement on Fair Funding Review

The LGA responds to the Government's Fair Funding 2.0 consultation response.

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Responding to the Government’s Fair Funding 2.0 consultation response, Cllr Pete Marland, Chair of the Local Government Association's Resources Committee, said:  

"The previous opaque funding system has weakened councils' financial sustainability and essential services. There are some positive measures included in these reforms such as multi-year settlements, fewer fragmented ring-fenced grants and reduced reliance on competitive bidding.  

“However, some councils will clearly do better than others from these allocation plans. It is good that government has pledged some extra transitional support but we reiterate our call for all councils, both rural and urban alike, to be protected from real terms cuts to ensure their financial sustainability. It is now critical that the provisional Local Government Finance Settlement is published as a matter of urgency so councils are not waiting until the Christmas period to understand what allocations they will receive.   

"Greater financial certainty and a simpler funding system are important, but council finances remain under severe pressure. Councils are facing huge cost increases in areas including adult social care, temporary accommodation, SEND, and home to school transport and so need a significant boost in resources to prevent widespread financial failure”