Inner London to lose out in funding rebalance, says IFS report
A thinking tank will be the largest loser within the scope of the plan to update the council financing rules of Councils in London in London.
The Institute of Financial Research (IFS) was able to see that some London districts have been taken into account that the financing levels fell to 12% after the inflation was taken into consideration.
However, areas outside London will be obtained from changes with urban areas outside the capital, including Nottingham, Wolverhampton and Slough.
The government argues that revision is necessary because the financing of the councils took steps with the demand for local service.
The new financing system, which will be gradually removed from 2026 for more than three years, will see the different cost of delivery in the formulas used by the government to achieve the demand levels operated by the Council.
Further financing shares are directed to areas with a higher share of properties in lower council tax bands, while the part of the work rates will be redistributed since 2013.
IFS estimates that the proposed changes were set to redistribute about £ 2.1 billion in annual government financing, and that 186 authorities have been lost and 161 will benefit.
It will not be possible to say exactly what the changes for each area will mean until the plans are completed later this year.
However, the Thinking Staff, Camden, Hammersmith and Fulham, Kensington and Chelsea, Wandsworth and Westminster’s overall financing decreases decreased by 11-12%, and even a proposed funding floor to limit losses.
Considering that these areas have many properties in low rates and higher bands, the Council will be lost within the scope of the proposed method to solve the differences in tax revenues.
According to the report, outside London, East Midlands and Yorkshire and Humber will see the biggest increases in financing.
The relatively high, but the highest – the highest – population density will be prepared well, including the foreign London districts and councils in Blackpool, Nottingham and Slough.
He added that the largest results will be seen in the Shire Regional Councils, where some of the councils, where the most growing business income such as Mid Suffolk and North West Leicestershire will grow the most.
Other regions in more urban areas such as Harlow, Crawley and Norwich are among the largest winners.
The share of financing to the poorest areas will be greater than the least deprived ones, he added.
The concussion will affect the share of the central government financing distributed to the councils in the UK, including income allowed to be protected from job rates.
This currently represents about half of its income, the councils are upgrading locally and 5% in annual increases.
It is allocated according to a complex formula mixture, taking into account the factors such as financing, population and deprivation.
Labor ministers argue that existing rules, which have not been updated for more than a decade, cannot reflect higher demand for Council services in poorer areas.
Liberal Democrats, changes will “shock the system for many councils” and “Peter Peel to pay to Paul” changes will brand changes, he said.
“The government carries the pain of the inadequate funding of the chronic council to finance local services everywhere, rather than providing economic growth to finance local services,” the leader Daisy Cooper carries it from one community to another. “
The Spokesperson of the Local Government Department said: “It means that local authorities have been financed, the connection between the outdoor road, the financing and the need for service has broken down and left the communities behind.
“Therefore, we take a decisive action to reform the financing system, so that we can take back the councils and develop public services”.
Although there is a common agreement between the Councils that the current system needs to update is bad, designing a new system creates a political headache for ministers before an important local election next year.
Many local leaders have warned that their current financing levels did not meet the increasing cost of compulsory services such as adult social care and special education needs despite the increases in recent years.
