Teresa Pearce MP, Shadow Secretary of State for Communities and Local Government, commenting on the IFS analysis which shows that major changes to councils’ funding are making councils much more dependent on council tax and business rates raised locally, said:

“This analysis from the Institute for Fiscal Studies clearly highlights the problem that – whilst the devolution of business rates will mean increased funding for some councils, many more will lose out.

“Labour is the party of devolution and we support the principle of devolving business rates. However, we are concerned about the prospect of even greater inequality between regions. 

“The poorest parts of the country have already been hit hardest by the Governments cuts to local councils. It is these deprived regions of the UK which will be at greatest financial risk.

“From the weekly bin collection to looking after the elderly, local councils deliver the services that we all depend on. The Government urgently needs to come forward with plans to deliver fairer funding for every part of the country and safeguard the services our communities rely on.”