Latest news with #MHCLG
The Independent
10 hours ago
- Business
- The Independent
Labour plans council tax shake-up that could see rich areas pay more
Labour is proposing a significant reform to council tax funding, aiming to make it fairer by directing more central government funds to areas with the highest need. The new approach seeks to alleviate the burden on local authorities that currently impose large council tax increases with little return, by enabling them to request lower rises. The reform will likely result in less central funding for areas where local services are not as stretched. A Ministry of Housing, Communities and Local Government official said the current system has led to "perverse outcomes" and the new plan aims to be fairer to councils that have historically faced difficult financial decisions. A consultation has been launched by the MHCLG to evaluate how new funding allocations will be made, including assessing needs for adult social care, children's social care, and Special Educational Needs and Disabilities funding.
The Independent
11 hours ago
- Business
- The Independent
Council tax bills could rise in richer areas to fund struggling authorities
Council tax bills across the UK could soon see a major shake-up as a new Labour plan looks to make funding 'fairer.' Led by deputy prime minister Angela Rayner, the plans will ensure more government funding goes to areas with the highest need. The new approach looks to address issues in local authorities that are enforcing large council tax hikes every year while residents repeatedly see little return for this money. By making more central funds available to areas where demand is greatest, these areas will be more able to ask for lower council tax increases. However, this will likely mean that less funding will be available to areas where local services are not stretched, and residents have not been asked to pay such steep bill rises in recent years. As such, these councils could be forced to recoup the funding from maximising council tax revenue. A Ministry of Housing, Communities and Local Government (MHCLG) official told The Times that the current system has resulted in 'perverse outcomes, where some authorities are struggling to provide basic services whilst others are better off'. They add that the new approach would 'ensure that government doesn't reward places that have been able to keep council tax levels low due to having stronger tax bases', and be 'fairer to local authorities and their residents where they have had to take difficult decisions historically on council tax, often due to having weaker tax bases.' About half of all council funding comes from central government, meaning the new method marks a major reform. The MHCLG has launched a consultation over the new measures to evaluate how the new funding allocations will be made. This will include assessing the need of councils that provide adult social care, as well as looking at how to reform children's social care and Special Educational Needs and Disabilities (SEND) funding. Nine in ten councils enforced the maximum possible council tax rise of 4.99 per cent in April, with six given permission to raise local rates even higher. These were Windsor and Maidenhead, Newham, Bradford, Birmingham, Somerset, and Trafford. Minister for Local Government and English Devolution, Jim McMahon OBE said: 'We inherited a local government sector on its knees—councils pushed to the financial brink, facing rising demand, and working people not receiving the quality local services they rightly deserve. 'There's broad agreement across council leaders, experts, and parliamentarians that the current funding model is broken and unfair. This government is stepping up to deliver the fairer system promised in the 2017 Fair Funding Review but never delivered. 'These reforms are urgently needed to put councils on a stable footing and ensure better services for residents — especially working people — right across the country. It's a key part of our Plan for Change to deliver the outcomes people deserve.' Cllr Pete Marland, Chair of the Local Government Association's Economy and Resources Board, said: "An opaque funding system has weakened councils' financial sustainability and vital public services, and we will be working through the details of this consultation. 'Different councils will have contrasting views on these proposals. Individual councils will need to know the implications and a transitional mechanism is crucial to avoid putting services at risk.'
BBC News
7 days ago
- Business
- BBC News
'Trailblazer' Spending Review fund towns in the dark
Local authorities involved in regeneration schemes announced during the government's Spending Review say they are still waiting for information about what the projects might actually Wednesday, the government said 25 "trailblazing neighbourhoods" would each receive up to £20m over the next decade as part of "community-led" renewal include Walker North in Newcastle, Barrow Central in Cumbria, Thorntree in Middlesbrough and Central Stockton and Ministry of Housing, Communities and Local Government (MHCLG) said the money would "boost growth" and "regenerate our communities". The MHCLG said it "will support improvements people can see on their doorstep, champion local leadership, foster community engagement and strengthen social cohesion".When asked how exactly the money would be spent to achieve this, or how it had chosen the locations to give the money to, the department did not comment. It is understood the money could be spent on various local projects such as youth clubs and councils should receive funding from April 2026. Newcastle City Council said it was still waiting for more information about the scheme. Westmorland and Furness Council said any additional money was "welcomed"."We are looking forward to finding out more about the trailblazer neighbourhoods plans for Barrow Central," a spokesperson Borough Council said that while it was still waiting for more information about the scheme, it believed the funds would support its ambition to accelerate plans to improve Stockton town centre. "We will now work with local partners and communities to develop exciting proposals for the trailblazer," a spokesperson said. Middlesbrough Council declined to comment. Follow BBC North East on X and Facebook and BBC Cumbria on X and Facebook and both on Nextdoor and Instagram.
BBC News
11-06-2025
- Politics
- BBC News
£20m from spending review for Bentilee and Ubberley
A "deserving" area of Stoke-on-Trent will receive £20m of government funding for regeneration and Ubberley was announced as one of 25 "trailblazer neighbourhoods" as part of Chancellor Rachel Reeves's spending government said the funding would would "support improvements people can see on their doorstep, champion local leadership, foster community engagement and strengthen social cohesion"."That is a part of the world that deserves more from the local authority and from government so I'm really pleased that money has been allocated," Labour MP Gareth Snell said. Councillor Jane Ashworth, Labour leader of Stoke-on-Trent City Council, said it was a "truly transformational" sum of money which would make a real difference to people's lives."It is also recognition of the work we have already been doing to empower communities to have more control over the places where they live," she review: Your questions answeredThe Ministry of Housing, Communities and Local Government (MHCLG) said it would work with community leaders in the neighbourhood to develop potential schemes. Snell said further details would come out in the next few days and the projects would be led by the neighbourhood itself."This has to be about what the neighbourhoods need and what they want rather than being from the top down," he added."I think it's a great opportunity for that whole community to take a grip of their future." Follow BBC Stoke & Staffordshire on BBC Sounds, Facebook, X and Instagram.
BBC News
10-06-2025
- Business
- BBC News
East Sussex County Council considering specialist accountants
East Sussex County Council is considering hiring specialist accountants to help it deal with financial difficulties and potentially apply for government Nick Bennett, lead member for resources and climate change, will decide on Tuesday whether to commission a £40,000 review by the Chartered Institute of Public Finance and Accountancy (CIPFA). The council faces a potential deficit of more than £37m in the 2026/27 financial a report, officers said a CIPFA review would likely be required should the council approach the Ministry of Housing, Communities and Local Government (MHCLG) to explore options for Exceptional Financial Support (EFS). The council has not yet formally agreed to seek EFS, reports the Local Democracy Reporting Service. A council spokesperson said: "CIPFA have been approached to undertake their assurance review early, to provide the council with a report that will support the work that the council may need to undertake with MHCLG."If EFS proves not to be required, or an option, the CIPFA review will provide external assurance as to the actions the council is taking to address the financial challenges the council faces."A CIPFA document says the team would work with the council to draw up an improvement plan after say the review's findings would also be used to inform the county council's annual budget-setting proposal comes amid some significant financial uncertainty for the report said the upcoming comprehensive spending review and potential changes to grant funding could impact the authority's could help by allowing the council to borrow money to fund everyday services - something councils are not usually allowed to councils can only borrow money for long-term investments, like building schools or buying equipment, not to cover day-to-day costs like wages or energy bills.
