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Number of posts : 84
Registration date : 2011-02-23

PostSubject: 'Broken'!!!!!   Wed 16 Nov 2011 - 15:15

The Department of Communities and Local Government has already indicated it plans to overhaul the formula grant used to assess the needs of councils which has been in place since 1988.

Alongside council tax, this is the main way council services in England and Wales are paid for.

As part of a new approach to local government finance, authorities will be allowed to directly keep money raised through business rates and encouraged to develop other forms of revenues.

Local government minister Bob Neil said Whitehall funding had for too long been determined by a bureaucratic formula rather than needs on the ground.

"The local government funding system inherited from the last administration is broken," he said. "It is confusing, arbitrary, complex, fails to support growth and is widely seen as unfair.

"Councils routinely have had to talk up circumstances that downplays their locality to get more money from Whitehall rather than talk up their opportunities for growth and success."

"By letting councils keep the products of enterprise, we will end their demoralising dependence on government handouts, finally start rewarding economic growth and support local firms and new jobs."

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