CLES welcomes restoration of link between council funding and deprivation

Dr Tom Lloyd Goodwin, Deputy Chief Executive of CLES, said: 

“Local government finance is much more a niche accounting matter – it affects every local economy in the country. In fact, our research shows that if council funding had been maintained at 2009/10 levels rather than facing austerity, then national growth could have been £43bn greater than it is today.

“After fifteen years of lost opportunities, it’s good to see the government grasp the mettle on local government funding and make some long-term decisions about how it is allocated going forward. It is right to restore the link between council funding and deprivation.

“Why does that matter? Well, it means that your local council can plan for the future, keeping vital services like adult social care and libraries running, and it means your council tax money can be used more effectively. But this won’t fix the whole system – council funding remains threadbare, while council tax (local government’s outdated, regressive and limited lever) remains unchanged, so this isn’t job done yet”.

ENDS