Local Council Funding System Should Be Frozen To Provide Stability Says London Councils

Date: 2010-02-25 10:27
Source: London Councils

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London Councils believes that for distribution of over £29 billion funding to be allocated through such an unstable system is perverse.

Until a new system can be designed which has the active support of local authorities in every region in England, London Councils wants the formula grant, with all its statistical calculations and funding floors, to be frozen.

This would provide local authorities with some much-needed stability through a period of economic uncertainty and allow central government time to work up a more robust and equitable system.

London Councils’ Chairman Councillor Merrick Cockell said:

“It’s quite clear that the four block funding model is not fit to allocate billions of pounds around the country. Its effects range from the baffling to the perverse.

“The government must freeze the system until a more robust and transparent system can take its place. While this won’t immediately correct the system’s many injustices, it will at least provide local authorities with some much needed clarity and stability to work with.”
Published on eGov monitor (http://www.egovmonitor.com)
Source URL: http://www.egovmonitor.com/node/33986