Local Government Finance

Balance of Funding Review

Terms of Reference


The overall aim is to review all aspects of the balance of funding, review the evidence and look at reform options. This can be broken down into two objectives:

1. ESTABLISHING THE NATURE AND PRIORITY OF THE ISSUE

The review will explore and test the range of criticisms that have been levelled at the present balance of funding, in order to establish clearly the key issues and as far as possible to clarify causalities. It will also examine the extent of impact on different authorities. A better understanding of the inter-related issues should shed light on the case for change, and influence how potential options for change are appraised.

2. IDENTIFYING AND ANALYSING OPTIONS FOR CHANGE

The review will consider a range of short and long term options for changing the current balance of funding. Through a wide-ranging and objective analysis it will establish the ‘pros and cons’ of each option. The review should take a broad look at the full impact of each option so that all the implications can be established.

To achieve these objectives we intend to make full use of existing evidence, and to conduct research where necessary.

MEMBERSHIP

The Steering Group will consist of between 15 - 20 people to be invited by the Minister for Local Government. It will include Ministers and senior figures from local government, the accountancy profession, academia, the business community and the union movement. Group members will act in a personal capacity. Others may be invited to join the group or its sub-groups when expertise in specific areas would be helpful. Senior officials from Government departments with an interest will also sit on the group.

WORKING METHODS, TIMING AND OUTPUT

Nick Raynsford, Minister of State for Local Government and the Regions, will chair the steering group. The first meeting of the Steering Group will be in April 2003. Further meetings will be held every two to three months. We expect the review to last for about a year.

Papers presented to the review will be published on the ODPM and LGA web-sites.

ODPM officials will provide a secretariat and will write a report of the review’s proceedings. We envisage that the report will summarise the main issues discussed by the Group and will set out the pros and cons of a range of options for changing the balance of funding.


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Last updated on 23 January 2003
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