LOCAL authorities representing some of England’s poorest communities warned today that elements of this year’s funding settlement for councils disproportionately favours wealthier areas.

The Special Interest Group of Municipal Authorities (Sigoma) accused the government of shifting its focus away from local needs.

The group, which represents 47 urban councils in some of the most deprived areas in England, made the comments in response to the government’s consultation on the settlement for 2024-25.

Sigoma expressed concerns that an increasing reliance on council tax to boost funds means that people are being forced to cover the costs of essential services that should be otherwise funded by the government.

They say this approach does not take into account the variations in the amount of council tax generated in different areas, with poorer areas left at a disadvantage by having more properties in lower council bands. 

Sigoma also raised concerns over the government’s “funding guarantee,” which claims to increase councils’ “core spending power” by 3 per cent.

According to Sigoma, 30 per cent of the most deprived authorities get nothing from the guarantee. Meanwhile, 10 per cent of the least deprived areas received the most per household. 

Sir Stephen Houghton, Sigoma chairman and Labour leader of Barnsley Council, said: “These pressures, following a decade of cuts, have pushed many councils to the brink.

“The settlement also failed to distribute funding fairly. Over the last 14 years, the method of allocating funding has been moving further and further from a needs basis, resulting in an ever-growing gap between councils in the richest and poorest areas.

“The provisional settlement cements that trend and severely undermines any notions of levelling up.”