Funding changes may leave councils worse off

A QUARTER OF AUTHORITIES COULD LOSE MONEY

- By HARRY TAYLOR

AROUND a quarter of councils in England could lose money under the Government's proposed reforms to how local authorities are funded, analysis has found.

A report from the Institute for Fiscal Studies (IFS) said the changes would create big "winners and losers" as ministers attempt to address perceived unfairness in levels of core funding across the country.

Sir Keir Starmer's own council, Camden in north London, will be hit by the reforms when taking inflation into account, the IFS added.

Inner London boroughs including Westminster will have less money even if they increase council tax by the maximum amount allowed.

Whitehall will provide a minimum level of funding, a so-called funding floor, for council leaders during the changes, but the IFS said overall cash for inner London town halls would be 11-12% lower in 2028-29 in real terms.

The paper said: "Around one in four councils would see real-terms falls in overall funding under the Government's proposals, with around 30 on the lowest funding floors seeing real-terms cuts of 11-12%. Conversely, another one in four councils would see real-terms increases of 12% or more."