Local politicians in Middlesbrough have welcomed government plans that aim to achieve fairer funding of councils.
The town’s Labour politicians are in lock-step with the Government on the matter, and the leader of Middlesbrough’s Conservative group of cllrs has voiced his support for any measures that bring additional funding to the town.
While details are limited at the moment, the Government has said that they will create a fairer system that reflects areas’ changing needs, differing delivery costs and the level of demand on front-line services that people rely on such as social care.
Generally speaking, there is going to be a shift so that greater funding goes to poorer areas. The consultation process has been titled Fairer Funding Review 2.0, following the previous government’s Fairer Funding Review, which was launched in 2017.
The Ministry of Housing, Communities and Local Government (MHCLG) says it aims to overhaul “the decade old, outdated funding methodology currently used to fund councils, so allocations are made based on the latest and best available data and recognise the areas where demand for council services is greatest. As a result of these changes, left behind places will on balance see larger increases in available income”.
Changes will also see the existing competitive bidding processes scrapped, which councils often have to go through for small pots of money, which should simplify the 300 grants that already exist to slash time waste in councils and Whitehall and prioritise value for taxpayer cash.
Minister for Local Government and English Devolution, Jim McMahon said:“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.”
A joint statement from Middlesbrough Labour Mayor Chris Cooke and the town’s two Labour MPs (Andy McDonald and Luke Myer) said: “For years, councils like Middlesbrough have been underfunded by a system that failed to reflect the real needs of our communities, particularly in the North. That’s why we have pushed hard for this change demanding action as a council and in parliament.
“We welcome the Government’s decision to overhaul the local council funding formula with the intention of finally allocating funding based on where it is most needed. These changes will mean more support for deprived areas, less bureaucracy, and empowering councils in places like Middlesbrough to deliver better services for everyone.”
On the system that was in place under the previous government, Middlesbrough Conservative group leader Cllr David Coupe said: “The theory behind it was great, I think in practice it perhaps wasn’t as good.” He highlighted how “in Middlesbrough, we got the Towns Fund” but “I’ve always found the competitive things are maybe not the best way to go forward.”
Sharing his thoughts on the proposed changes, he added: “All I want is stuff to come to Middlesbrough, and as long as it’s spent correctly and it’s not wasted and put to good use, then I’m all in favour of it, if they want to bring a new system in which is different, that’s fine. But, call me cynical, sometimes I find that Middlesbrough seems to miss out on things anyway, which I don’t want. I want us to get as much as we possibly can across the town.”
On the Fair Funding Review, which was launched in 2017, “but never delivered”, in the words of Mr McMahon, Cllr Coupe said that the previous government “should have implemented it a bit better”, as he highlighted the “monies some of the London boroughs have compared to what we have, it’s not good and we should get a lot more than we actually do, whatever government is in.”
On Mr McMahon’s comments about inheriting “a local government sector on its knees”, Cllr Coupe described it as “a bit political, one of the main problems as we all know is adult and children’s social care, that eats most of the things up, until whatever government comes up with an answer for adult and children’s social care, then things will never be fantastic.”
Middlesbrough is one of the 49 member councils of Special Interest Group of Municipal Authorities (SIGOMA) Cllr Sir Stephen Houghton, Chair of SIGOMA reacted to the Government’s announcement, saying: “The significant reforms proposed by the government will deliver a fairer and more sustainable system and are a major and positive step forward.”
He added: “Simplifying the grant system and delivering a long-overdue multi-year settlement will bring about much-needed stability and certainty for councils. The Government’s close engagement with the sector is testament to the reset in the relationship with local government, and we look forward to responding to the consultation and continuing to engage with the department.”
However, not all local government groups were entirely happy with the announcement. Cllr Tim Oliver, Chair of the County Councils Network said it is not yet clear “whether the government has overcompensated for deprivation in distributing non-social care funding, where there is little evidence to show this is the main driver of council costs”.
