Government Response

The Government responded to this petition on Thursday 12th May 2016

These are important times for local government: devolution of power and resources from Whitehall is gathering momentum. Councils will have over £200 billion available to spend between now and 2020.

With councils accounting for a quarter of public spending, they, like all parts of the public sector, need to play their part in tackling the deficit.

Earlier this year, we confirmed an historic settlement for local government, which will make councils fully responsible to local people for their financing, rather than central government. It is a settlement which is broadly flat in cash terms between now and 2020 and one that provides long-term funding certainty, through the offer of a four-year budget, to any town halls that wish to plan ahead with confidence (https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/498698/core_spending_power_summary.xlsx).

We have also listened to the many councils who feel that too much time has passed since the last substantial revision of the formula which assesses a council’s needs. We have therefore announced a Fair Funding Review to consider the funding needs of different types of areas (https://www.gov.uk/government/speeches/final-local-government-finance-settlement-2016-to-2017).

This will involve a thorough review of what the needs assessment formula should be in a world in which local government spending is funded by local resources, not central grant. The Review will be done in partnership with the LGA and the wider local government sector, so that all councils have the opportunity to contribute their views.

Department for Communities and Local Government