Funding reform proposals are a step in the right direction

Funding reform proposals are a step in the right direction

By Councillor Nazia Rehman, cabinet portfolio holder for finance, resources and transformation

Recent reports suggesting reforms to the way central government funds are distributed to local authorities are an encouraging read to councils facing similar challenges to us.

Two key aspects of the proposals are consistent with what we – alongside many of our counterpart councils and organisations – have been calling for many years.

Under the proposals, levels of deprivation would be given more weighting, meaning areas like ours that are seeing a significant rise in demand for our services will receive an allocation that reflects this.

An area’s council tax base would also be part of the considerations, so that those who have a comparably low council tax base would not lose out, as they do under the current system.

These are both policy areas that colleagues and I have spoken about at length during the last decade and more.

For example, core spending power for councils has only increased over the last decade largely due to the assumption that councils will increase council tax by the maximum available.

It has meant the burden of continuing to offer high-quality services has been placed on local taxpayers and disadvantages those with higher needs and levels of deprivation.

Wigan Council, alongside many counterparts in northern England – along with organisations such as SIGOMA (representing a collection of urban local authorities) have argued that the current system, last updated in 2013, fails to adequately reflect the challenges we are facing.

Since 2010, Wigan Council has faced significant real terms cut to its funding, in excess of 20 per cent, working out at almost £700 per household.

Our message has been that we have borne the brunt of local government cuts for more than a decade, and something needed to be done.

Therefore, what has been proposed as part of the new government’s reform agenda would start to redress some of these issues.

But while this is cause for optimism, there is a long way to go before these proposals become a reality and we will continue to make our voice heard on this issue.

Further details are expected later this year and we will certainly be keen observers.

Any changes, and hopefully a multi-year funding settlement, will not come before 2026 at the earliest. In the meantime, our Progress With Unity plans are helping to tackle inequalities across our borough.