{"id":306816,"date":"2025-11-20T18:57:43","date_gmt":"2025-11-20T18:57:43","guid":{"rendered":"https:\/\/peraltafinancing.com\/uncategorized\/councils-in-north-of-england-and-midlands-to-get-more-funding-in-shake-up-local-government\/"},"modified":"2025-11-20T18:57:43","modified_gmt":"2025-11-20T18:57:43","slug":"councils-in-north-of-england-and-midlands-to-get-more-funding-in-shake-up-local-government","status":"publish","type":"post","link":"https:\/\/fivemor.com\/?p=306816","title":{"rendered":"Councils in north of England and Midlands to get more funding in shake-up | Local government"},"content":{"rendered":"


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Deprived towns and cities in the midlands and the north of England are the big winners in a major shake-up of local authority funding that will redirect cash from affluent rural areas to urban councils hit hardest by austerity.<\/p>\n

Ministers said the changes put in place a fairer system that recognised the extra needs and weaker council tax raising powers of councils in so-called \u201cleft behind\u2019 areas. It guarantees them real-terms funding increases for the next three years.<\/p>\n

\u201cPeople living in the places that suffered most from austerity will finally see their areas turned around,\u201d the local government minister Alison McGovern said in a parliamentary statement<\/a>.<\/p>\n

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The changes, which will be introduced from April<\/a> before critical local elections in May, could see funding boosts for Reform-led councils in the north with high levels of deprivation such as Durham and Lancashire, as well as in Kent, its flagship council.<\/p>\n

Although the precise council-by-council impact is not yet available, sources suggest a funding boost of at least \u00a320m a year for Kent county council would allow it to meet its main political priority of setting a council increase lower than 5%.<\/p>\n

The extra resources directed to once solid Labour-supporting heartlands in the north are seen as part of an aim to boost civic infrastructure in post-industrial communities. The hope is to reverse a trend of growing distrust in politicians by voters who have often switched their electoral allegiances to the Tories and Reform in recent years.<\/p>\n

\u201cThis is about providing visible proof that the state can still improve people\u2019s lives and keep its promises. The journey will at times be difficult, but the end result will be a new role of councils as agents of renewal,\u201d said McGovern.<\/p>\n

An analysis of an earlier model<\/a> of the government\u2019s Fair Funding formula carried out by the Institute for Fiscal Studies in the summer unexpectedly found some deprived areas like South Tyneside, Sunderland, Gateshead and Wigan were set to lose out, but after further tweaks those areas are now expected to be beneficiaries.<\/p>\n

Sir Stephen Houghton, chair of the SIGOMA group of urban councils including Leeds, Liverpool, Manchester and Sheffield, welcomed the changes. \u201cThese reforms mark a significant step towards a fairer and more balanced funding system for councils across the country,\u201d he said.<\/p>\n

The settlement was not as bad as feared for London\u2019s councils, who at one stage were concerned they might lose billions in funding. An 11th hour change in deprivation measures, which recognised the capital\u2019s high levels of housing need and areas of concentrated child poverty, mitigated the impact to some extent.<\/p>\n

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Responding cooly to the announcement, the chair of London Councils, Claire Holland, warned that spiralling financial pressures caused by rising need for services meant that under the new formula half of the capital\u2019s 32 boroughs would need government bailouts to avoid effective bankruptcy by 2028.<\/p>\n

The changes were criticised by the County Councils Network (CCN), which said many of its members in rural areas were set to \u201close out substantially\u201d. It called the new formula \u201carbitrary\u201d and accused ministers of caving in to pressure from urban councils.<\/p>\n

\u201cOur analysis has shown that county and rural taxpayers are already set to foot the bill for the reforms, with 33 of our councils facing a real-terms reduction in funding unless they increase their council tax by 5% per annum over the next three years,\u201d said the CCN\u2019s finance spokesperson Steven Broadbent.<\/p>\n

Jeremy Newmark, finance spokesperson for the District Councils\u2019 Network, said: \u201cInstead of delivering the essential financial reform and fiscal devolution that are needed, the government is merely reallocating an already inadequate funding pot.<\/p>\n

\u201cWhile it is of course legitimate for ministers to use areas\u2019 deprivation as a factor in determining services, it would be ironic, unfortunate and counterproductive if this led to an increase in deprivation outside of the biggest cities.\u201d<\/p>\n<\/div>\n\n","protected":false},"excerpt":{"rendered":"

Deprived towns and cities in the midlands and the north of England are the big winners in a major shake-up of local authority funding that will redirect cash from affluent rural areas to urban councils hit hardest by austerity. Ministers said the changes put in place a fairer system that recognised the extra needs and […]<\/p>\n","protected":false},"author":1,"featured_media":306817,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[97732,109848,109849,182,103043,12501],"tags":[94903,4130,15075,4378,13747,137543,843,28491],"dealstore":[],"offerexpiration":[],"class_list":["post-306816","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economic-policy","category-local-government","category-local-politics","category-politics","category-society","category-uk-news","tag-councils","tag-england","tag-funding","tag-government","tag-local","tag-midlands","tag-north","tag-shakeup"],"yoast_head":"\nCouncils in north of England and Midlands to get more funding in shake-up | Local government - Som2ny Network<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/fivemor.com\/?p=306816\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Councils in north of England and Midlands to get more funding in shake-up | Local government - Som2ny Network\" \/>\n<meta property=\"og:description\" content=\"Deprived towns and cities in the midlands and the north of England are the big winners in a major shake-up of local authority funding that will redirect cash from affluent rural areas to urban councils hit hardest by austerity. 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