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Council welcomes fair funding review

Simple system should generate better deal for taxpayers

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A new simple, transparent funding system for councils should generate a better deal for Leicestershire tax payers.

That’s the view of Leicestershire County Council as it welcomes a new funding model mooted by the Government.

Published ahead of next week's Cabinet meeting, a report shows that if Leicestershire – the lowest-funded county - was funded at the same level as Islington, it would be £305m a year better off, or £50m compared to Oxfordshire.


The current system of local government funding is broken. And we’ve been calling for a new approach which matches funding with need for many years.

The proposed shake-up is a big step in the right direction. A simple, up-to-date system, based on a smaller number of cost-drivers, would reduce the large gaps between the highest and lowest funded councils, and is most welcome.

Our own research and modelling shows that this kind of system should produce a fairer distribution of resources. Clearly, the devil will be in the detail. But, with councils facing unprecedented financial pressure, reform remains fundamental and it’s good news that our campaign is bearing fruit. We are, however, cautious as reforming funding at a time of tight public sector finances will be very difficult to achieve.”



The report sets out the council’s draft response to a Government consultation. It will be discussed by the council’s cabinet at a meeting next Friday (9 March) – tune in and watch the meeting online at: 

Leicestershire remains the lowest funded county – the table below shows how it compares to other areas:


Funding per head in 2018/19Extra funding Leicestershire would receive if it had the same spending power






The amount each council receives every year is set out in the Local Government Finance Settlement – calculations are based on the Government’s current funding model, brought in over 10 years ago.

Last summer, around 600 residents and businesses backed the council’s calls for fair funding -  fellow low-funded councils Lincolnshire, Kent, North Yorkshire, Worcestershire, Cambridgeshire and Essex, plus cross-party support group the County Councils Network – also lent their support.

A new fair system – drawn up by the council – would give Leicestershire an extra £53m.

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