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Extra £53m would ease funding pressure

A new, simple and fair funding formula would ease the pressure on cuts, says the council

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A new local government funding model would unlock an extra £53 million for Leicestershire, dramatically reducing the need for cuts.

The county council has drawn up a simple, clear formula which allocates money in a fair way based on need.

Now, after presenting it to government last year, and with budget pressures intensifying, the council is calling for fair funding to become a reality – and is asking residents to send in their comments

 

The current system doesn’t match funding with an area’s needs, creating a postcode lottery.

Our proposed model is based on factors that drive demand for local services, such as the number of older people, the length of roads travelled by HGVs and the number of school-age children. 

Crucially, it allocates money in a fair way and narrows the gap between the highest and lowest funded councils, and is transparent.

Like many councils, we’ve planned ahead for reduced funding - and saved £161 million so far. But with a further £66 million to save, £23 million of which is unidentified, we and others are facing a crisis of funding.

 

Leicestershire remains the lowest-funded county in the country. If it was funded at the same level as Surrey, it would be £104 million per year better off, or £350 million, compared to Camden.

For many years, the council has been pressing for reform. Last year, supported by Leicestershire’s seven MPs, it presented its new simplified funding model to ministers and senior civil servants at Westminster.

 

Residents are already noticing a difference to services – without more money, we would have to make more severe cuts to local services, and the impact on key frontline services would be drastic. 

Extra money eases the pressure and enables us to take a fresh look at council services, especially those services used by our most vulnerable residents.

 

Residents’ feedback will be sent to the government - explore charts, watch a video and send in comments.

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