Some of England's most-deprived councils to get funding boost in new deal

"Some of England's most-deprived councils will receive a funding boost under a new three-year local government deal which prioritises urban areas with high social needs at the expense of affluent places in the leafy south-east. Manchester, Birmingham, Luton, Bradford, Coventry, Derby and outer London boroughs such as Haringey and Enfield will receive big spending power increases under what ministers have described as a fairer system that will restore pride and opportunity in left-behind places. The housing and communities secretary, Steve Reed, said: This is a chance to turn the page on a decade of cuts, and for local leaders to invest in getting back what has been lost to bring back libraries, youth services, clean streets, and community hubs."

"However, the settlement got a lukewarm welcome from some urban councils in the north and Midlands which said it was disappointing that London's suburbs were the biggest winners from the review, leaving many of the most deprived communities facing further cuts after a decade of austerity. Leaders of county councils in English home counties and rural areas also criticised the settlement, describing it as unfair because it disproportionately benefited urban ones. The County Councils Network accused ministers of cherrypicking and predicgted it would leave many of its members in financial trouble."

"A group of wealthy central London authorities with relatively low council tax bills and high levels of financial reserves and which are expected to lose out significantly under the new arrangements will be allowed to set council tax from April above the 4.99% maximum increase. Some Reform-led councils such as Kent are net gainers under the new fair funding distribution formula, but it is unclear whether the boost will be sufficient to enable them to meet their political aspiration of cutting council tax bills."

A three-year local government funding deal prioritises urban areas with high social needs, directing increased spending power to cities including Manchester, Birmingham, Luton, Bradford, Coventry, Derby and outer London boroughs such as Haringey and Enfield. Ministers present the arrangement as a fairer distribution aimed at restoring pride and opportunity in left-behind places and enabling investment in libraries, youth services, clean streets and community hubs. Some urban councils criticised the outcome for favouring London's suburbs and leaving many deprived communities facing further cuts. County and rural leaders described the settlement as unfair and warned of financial strain. Wealthy central London authorities expected to lose out may be allowed higher council tax rises, while some Conservative-led councils gain but may still lack capacity to cut bills. The 2026-27 settlement is unlikely to resolve the broader local government funding crisis.

Read at www.theguardian.com