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Govt must examine IFS warning of outdated council funding formula

April 13, 2020 11:12 AM
By Rugby Lib Dems

RBC ChamberResponding to a report by the IFS (Institute for Fiscal Studies) that concludes an 'out-of-date' and 'overly-general' spending needs assessments may mean funding may not end up where it is ultimately needed most, Liberal Democrat Communities, Housing and Local Government spokesperson Tim Farron said:

"Millions of people are facing financial hardship as a direct result of the coronavirus pandemic. That is why it is all the more important that we protect vital services run by Councils.

"Sadly, local government is still waiting confirmation of what exactly its future funding commitment to tackle the crisis will be. It is no use the Chancellor saying "spend whatever is necessary" without certainty of central funding to support local spending.

"Without the need for reorganisation of local government, Ministers must urgently examine this study and publish a response that ensures the most vulnerable are not left behind. Every penny is now vital to ensure Councils can continue to operate."