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Inner London to lose out in funding rebalance: Report
ENGLAND, AUG 7 – Government reforms will redistribute £2.1 billion annually, with 25% of councils facing real-terms cuts of up to 12% while others see significant funding gains, analysis shows.
- The UK government plans to reform local authority funding from 2026, redirecting money toward councils with lower council tax bands, mainly affecting inner London.
- The current system, unchanged for over a decade, is considered outdated and misaligned with local demand for services, prompting ministers to consult on changes.
- The reforms will redistribute about £2.1 billion annually, causing 186 councils to lose funding and 161 to benefit, with inner London boroughs losing 11-12% in real terms.
- The Institute for Fiscal Studies warns Camden and similar boroughs will see significant cuts despite maximum council tax increases, while one in four councils gain 12% or more.
- These changes suggest a reshaping of funding priorities but also risks shifting underfunding problems, with some critics calling it a transfer of pain rather than a solution.
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14 Articles
14 Articles
North East councils could be 'big losers' in huge Government funding reforms
Despite a push to divert funding from wealthier parts of the country to more deprived areas, a new report warns some parts of the North East may not benefit as much as expected from a Government review
·Newcastle upon Tyne, United Kingdom
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Evening Standard+3 Reposted by 3 other sources
‘One in four councils could lose money’ under Government’s funding proposals
A report says the changes would create big ‘winners and losers’.
·London, United Kingdom
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Coverage Details
Total News Sources14
Leaning Left2Leaning Right1Center5Last UpdatedBias Distribution63% Center
Bias Distribution
- 63% of the sources are Center
63% Center
L 25%
C 63%
13%
Factuality
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