News

County councils could lose up to £800m a year under proposed changes to the formulae for calculating the standard spending assessment, which is out for consultation until the end of next month.

Tim Richens, a member of the finance advisory team for the County Councils Network and assistant director of finance at Somerset, said that, while this would be the worst outcome, all the options proposed give the impression that money is being shifted from rural areas to towns and cities.

Of the four options modelled for education, only one would produce more resources for counties, he said.

“We are concerned that there seems to be a shift of resources from county areas. We will be looking at each option in detail and give the county view on the options we would like to see,” he said.

A separate report by CCN states that social care and health need to work virtually as one organisation.

It adds that short-term fixes will no longer be effective in saving the severe financial position of social services and that without creative solutions individuals will receive a reduced or delayed service.

- Vision for the Future is available from 020 7664 3007 and Formula Grant Distribution from www.local.dtlr.gov.uk/review/consult/index.htm