Funding reform proposals prompt concerns from Council

Government has proposed changes to how local authorities are funded

Author: Aaron HarperPublished 22nd Aug 2025

Concerns have been raised by Wiltshire Council over proposed reforms to local authority funding distributions in England.

The council is warning of a significant financial impact on the county, saying more than £4million could be lost over the next three years.

It comes amid an eight-week consultation by the Government regarding changes to how local Government's are funded by central Government.

The council backs the need for change, but says the over 100-page document includes 46 detailed questions but fails to provide worked examples of the financial impact. It adds that the lack of clarity makes it tough to assess how the changes would affect the council.

Further worries have been raised about an "assumed" reliance on maximum council tax rises and a 100% collection rate, which the council suggests is a flawed and unfair model.

Cllr Gavin Grant, Cabinet Member for Finance said: "We support the principle of fair funding and welcome the idea of a multi-year settlement to help us plan with more certainty. However, the current proposals lack transparency and potentially risk placing Wiltshire Council in a more difficult and detrimental financial position. It is almost impossible to fully assess the implications of these detailed proposals with the limited information provided, although it is apparent that Government are not adequately reflecting the cost of delivering services in rural locations and focusing funding more on their measures of deprivation.

"It is also unrealistic of Government to expect councils to provide vital services such as social care, while receiving below average funding increases over the next three years and ultimately reductions in Government grant funding.

"These proposals come at a time when all councils are under immense pressure, particularly in areas such as social care and Special Educational Needs & Disabilities. Without more detail it is very difficult for us to understand the true impact of these proposals and it is likely we won't know until the provisional local government finance settlement is announced which is usually received in December.

"We urge the Government to carefully consider the feedback it receives and ensure the final settlement is fair and appropriate for rural councils like Wiltshire. Meanwhile we will continue to advocate for a fairer, evidence-based funding system that reflects the needs and responsibilities of local authorities."

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