Local government settlement


The Department for Communities and Local Government has published the provisional details of the funding settlement for councils in England for 2011-12 and 2012-13. The settlement distributes the £29 billion in 2011/12 and the £27 billion in 2012/13 that the October Spending Review allocated to local authorities through the formula grant.

Some points in the settlement are:

  • Local authorities are facing average cuts of 4.4% in central government funding for 2011-12. No council faces a reduction of more than 8.9% in spending power in either 2011-12 or 2012-13.
  • More weight is given to parts of the country with the highest levels of need – with funding per head for residents in Hackney in 2011/12 coming to £1,043 compared to £125 per head in Wokingham.
  • A transitional grant of £85 million for 2011-12 and £14 million in 2012-13 will help councils manage issues related to the ending of the Working Neighbourhoods Fund.
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One Response to Local government settlement

  1. Pingback: Children in need « NCVYS' Financial Monitoring Blog

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