Newcastle Lib Dems demand clarity on Fair Funding Review amid fears London will benefit over the North

Newcastle's Lib Dem Leader of the Opposition Cllr Colin Ferguson is challenging the Labour Government to offer clarity on the future of local government funding on North East cities in November's Budget after speculation in a prominent national newspaper that London councils will be winners from the Fair Funding Review into the formula for Government funding for councils in England.

 The review, initiated by then Deputy PM Angela Rayner, was believed likely to lean towards an outcome favourable towards Northern authorities by recognising challenges faced by less well off areas. But with Rayner no longer leading the process and London MP and new Cabinet minister for Housing and Local Government Steve Reed now at the wheel, key review decisions may now be more favourable to London authorities, with the Conservative leader of Kensington and Chelsea amongst those welcoming "progress" on proposals to recognise higher housing costs in London in the funding formula. 

 Newcastle's Lib Dem Opposition leader Cllr Colin Ferguson has issued a challenge to the Government to clarify its intentions on council funding in the forthcoming Budget, amid rumours that tax rises and spending cuts may also be lurking in the Chancellor's Budget box.  

He said: "The Fair Funding Review's calculations will directly affect council services for everyone in the city from next year. but it is not currently clear whether this will benefit London's West End more than Newcastle's West End.. Everyone in the city agrees Newcastle deserves better, but everyone deserves to know what this will mean for us and for other Northern metropolitan councils.

I am speaking for the city by challenging them to deliver for Newcastle and the North, and to commit to a fair funding settlement that will allow clarity to the public about whether this Government is capable of addressing our region’s needs.  I am hearing very little about this from North East Labour council leaders and MPs. If they are not prepared to publicly stand up for a funding settlement that offers progress for the North East as well as Kensington and Chelsea, they will be held to account in May."

Newcastle's Lib Dem finance and budget scrutiny chair Cllr Mark Mitchell noted the decisions in the Fair Funding Review are likely to set out the financial realities for the city and other councils for at least the next three years, with no current certainty about who will be in charge at the Civic Centre beyond May. 

He said "It is not good enough for the Government to say that rents in Newcastle are lower and so people here need less support. There are too many children, too many pensioners, too many families living in poverty and reliant on foodbanks across our city. As Newcastle’s Labour MPs sit silently again, it is the Liberal Democrats who are demanding fair funding to lift people in Newcastle out of poverty.”

It is obvious that there is disadvantage and need both in London and in the North, but  I am not persuaded that Newcastle’s needs  are being adequately championed by its current Labour council leadership and MPs who inexplicably seem to be keeping their heads down. I would welcome a clear MHCLG ministerial statement of intentions for local government funding for English councils so that Newcastle, along with other Northern cites, can prepare accordingly and voters can judge whether the Government is actively seeking to redistribute funding or prefers to protect London as a local election priority in May."