14th December 2021
Solace calls for a finance Commission
Martin Reeves, Solace spokesperson for local government finance, said: “The sector is this week expecting the provisional local government finance settlement to be published.
“Whatever the settlement brings us, the more significant issue is that council services continue to tread water amidst the unpredictable and unstable seas of the current funding system. It is universally accepted that the local government finance system is broken – built on a business tax unfit for the 21st century, inefficient government grants and one-off funding pots, as well as a regressive ‘levelling down’ council tax model.
“Our approach to funding councils has not had a comprehensive review for decades so Solace is calling for a Commission to fundamentally review the way local government is financed.
“The Spending Review has provided a three-year spending envelope, so while we have a degree of certainty we should create something new. If not now, then when? If we are to successfully level up places across the UK, improve skills, reduce crime and health inequalities, we should grab this opportunity and create an effective approach that will stand the test of time.”