Local Government Finance Reform

The Government is reviewing how local authorities are funded. It is doing this in two parts: part one is the proposal that local councils should retain a greater proportion of the National Non-Domestic Rates, commonly known as business rates; part two relates to proposals on the Community Budget. The proposals are important to the local voluntary and community sector because:

• they are likely to affect a significant proportion of local voluntary and community organisations funded directly or indirectly by local government;
• changes to local government finances are likely to have a direct impact on local services and therefore on local communities;
• any potential change in the funding of public services is likely to affect the demand on services provided by local voluntary organisations;
• local authorities are key partners for the sector and therefore any significant change for the local authorities is bound to have some impact on the sector.

NAVCA has produced a two page summary which gives a brief overviewof the proposals, potential implications and NAVCA's response. We have also produced a more detailed analysis. and have responded to the consultation.

For more information read the Local Government Resource Review: Proposals for Business Rates Retention - Consultation and their plain English Guide.