Rural areas fear £800m loss to cities

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