How does Leicestershire compare to other councils?
Leicestershire fares badly, and has been the lowest funded county for many years. 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.
What’s wrong with the current system?
We believe it doesn’t share national resources fairly – this view is shared by many others in local government because:
- It doesn’t match funding with an area’s needs, creating a postcode lottery.
- It's out-of-date, complex and unclear, as it’s based on old systems, which focus heavily on past spending levels.
What does it mean for the Leicestershire?
We’ve planned ahead for reduced funding - and saved £200million so far. But with demand for services increasing, pressure on our budget is tightening.
What action has the council taken?
For many years, we’ve been pressing the government for change. In 2016, we developed a new simplified funding model which shares resources fairly and - supported by Leicestershire’s seven MPs - presented it to ministers and senior civil servants at Westminster.
What does the government say?
Our campaign has secured a review. The government has announced it's revising the way local government funding is calculated and is planning to issue a consultation. More details are expected to be announced in late 2019.
How is your proposal fairer?
Our new model:
- Allocates money in a fair way, based on need. This is a more just way of distributing money, and importantly, gives Leicestershire its fair share.
- Is a simple, clear formula, 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.
- Narrows the gap between the highest and lowest funded councils.
Watch our video of Councillor Byron Rhodes explaining why fair funding is important.