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<p>The final local government finance settlement confirmed a real-terms increase in
available funding for local authorities to help deliver local services, support vulnerable
residents and build vibrant communities.</p><p>This includes an additional £650 million
for social care, allocated using the well-established Adult Social Care relative needs
formula, which takes into account the relative needs of local authorities, including
in urban areas.</p><p>The additional resources provided through the settlement also
included the distribution of £180 million of surplus in the business rates retention
levy account, which was allocated on the basis of each authority’s 2013-14 Settlement
Funding Assessment. The Settlement Funding Assessment is a measure of the relative
needs of local authorities, including in urban areas.</p><p>Funding baselines for
every authority are determined by an assessment of the relative needs of areas, including
measures of deprivation.</p>
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