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Local government funding in crisis

By Martin Wicks Local Government is facing an unprecedented financial crisis resulting from the austerity programme and changes in the funding system. The allocations for funding for 2014-15 and 2015-16 were set on the basis of reductions in 2013-14 funding. The coalition government then abandoned the uprating of grants in line with an annual assessment of local needs. A new assessment is not due until 2020. Although councils will eventually be able to keep all their business rates this will be at the expense of declining government grant. By 2020 many authorities will receive no grant at all. [continue...]

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