Councils in north of England and Midlands to get more funding in shake-up

"Deprived towns and cities in the Midlands and the north of England are the big winners in a shake-up of local authority funding that will redirect cash from affluent rural areas to urban councils hit hardest by austerity. Ministers said the changes put in place a fairer system that recognised the extra needs and weaker council tax-raising powers of councils in so-called left behind areas. It guarantees them real-terms funding increases for the next three years."

"People living in the places that suffered most from austerity will finally see their areas turned around, the local government minister, Alison McGovern, said in a parliamentary statement. The changes, which will be introduced from April, before critical local elections in May, could see funding boosts for Reform-led councils in the north with high levels of deprivation, such as Durham and Lancashire, as well as in Kent, Reform's flagship council."

"The hope is to reverse a trend of growing distrust in politicians among voters who have often switched their electoral allegiances to the Conservatives and Reform in recent years. McGovern said: This is about providing visible proof that the state can still improve people's lives and keep its promises. The journey will at times be difficult, but the end result will be a new role of councils as agents of renewal."

The funding overhaul redirects resources from affluent rural councils to deprived towns and cities in the Midlands and the north, guaranteeing real-terms increases for the next three years. Changes take effect from April, ahead of local elections in May, and could boost councils such as Durham, Lancashire and Kent. Sources suggest at least 20m a year for Kent, enabling a council tax rise below 5%. Extra resources aim to bolster civic infrastructure in post-industrial communities and to reverse voter distrust following austerity. An earlier Fair Funding model indicated some deprived areas faced potential losses under previous arrangements.

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