Political opinion: Government is fixing the broken funding system for councils

With new changes announced by the Labour Government, councils will be funded more fairly based on latest deprivation data and local need, fixing the outdated system left by the Tories.

Under the Tories, an outdated council funding system based on decades-old data entrenched inequality – leaving some councils on a financial cliff edge and communities in deprived areas facing crumbling services, cuts and rising bills.

Meanwhile, councils in less deprived areas have benefited disproportionately, building up reserves while others struggled to cope.

The changes announced by the Labour Government reverse this injustice and ensure councils will be funded fairly, based on the latest deprivation data and local need, so that communities with the highest demands get the public services they rightly deserve.

Announcing the changes, Secretary of State for Housing, Communities and Local Government, Steve Reed, said: “This Labour Government is reforming the funding system that led to regional divides, postcode lotteries, and substandard public services for too many people”

“Our changes will make sure cash going to councils is shared out in a fairer way that follows needs.

“We want every family to benefit from our Plan for Change, and fairer funding means people will soon be able to see and feel the difference in their own local area.”

Welcoming the reforms to council funding, Amanda Martin MP said: “For too long under the Tories, areas like Portsmouth were left behind and less likely to get essential funding for our local services.

“By putting local need at the heart of new council funding, the Labour Government is righting that wrong and fixing the outdated system.

“I’ll be campaigning to ensure Portsmouth is heard and gets the funding it deserves – so we can deliver real-life improvements across our area.”