Portsmouth could get more funding under council cash shake-up
Portsmouth City Council could receive a greater share of government cash under new plans to reform the way councils are funded.
On June 20, the Labour government announced changes to what it described as the “outdated” and “complex” council funding system, promising a shift to a more “place-based” approach that directs money to areas with the greatest need.
Councils currently raise income through a mix of central government grants, council tax, business rates, fees and charges, and some commercial investments.
According to the Department for Levelling Up, Housing and Communities, future funding allocations will be based on “the latest and best available data” to better reflect local demand for services.
The reforms will also scrap the “competitive bidding processes” many councils must go through for “small pots of funding”. Around 300 separate grants will be simplified to address time wasting “in councils and Whitehall and prioritise value for taxpayer cash”.
Councillor Steve Pitt, leader of the council, said: “PCC will always welcome any increase to our funding settlement but we await further details and clarity from the government as to whether the new proposal will benefit us as a local authority and therefore our residents.
“We would hope that Portsmouth’s particular circumstances, with areas of significant deprivation, will lead to a better settlement.”
In Portsmouth, 13.4 per cent of people are classed as income deprived, according to the 2019 Indices of Multiple Deprivation. The city ranks 102nd out of 316 local authorities in England, with 1 being the most deprived. Some neighbourhoods in Charles Dickens and Paulsgrove wards are among the 10 per cent most deprived areas nationally.
Portsmouth South MP Stephen Morgan welcomed the reforms, highlighting that, for the first time, the cost of providing services in coastal areas will be recognised - factoring in seasonal pressures from visitors.
Additional measures will also include payment plans for residents struggling to pay council tax.
He said: “For too long, coastal areas like Portsmouth have been left behind by a funding system that doesn’t reflect our needs. I’m pleased the Labour Government is putting that right by recognising our pressures and funding our services fairly.
“And it’s common sense to offer people a payment plan when times are tough. Labour’s reforms will finally make the system fairer for local people.”