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Major Review of Local Government Funding

Office of the Deputy Prime Minister

20 January 2003

A major review of local government funding has been announced today by the Office of the Deputy Prime Minister (ODPM).

According to the ODPM, the review will "consider how the balance of funding between what is raised nationally and locally affects local government". It will be conducted by a Steering Group, due to meet in April, which will include Ministers and senior figures from local government, the accountancy profession, academia, the business community and the union movement, and will be chaired by Nick Raynsford, Minister for Local Government and the Regions.

Mr Raynsford said the group would be undertaking a "thorough examination of the way local government is funded and the balance of that funding between local and national taxation."

'These are important issues and need to be carefully considered", he added.

Mr Raynsford said: "I expect that the group will sit for a year and will then report on their findings. The findings of this group will, along with other work, inform policy for the next ten years and contribute to our long-term strategy of extending local freedoms and raising the quality of service. Because of the complexity of the issue and the need to avoid turbulence in local authority funding it is unlikely that any dramatic changes will occur immediately.'

Read the full announcement

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