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<p>The Government is undertaking a review of the relative needs and resources of local
authorities in England, with a view to setting fresh baseline funding levels in 2020-21.
We are working closely with local government representatives and others to examine
all of the available evidence for the costs faced by authorities; including how factors
such as rurality, sparsity and other geographical features affect the cost of delivering
services across the country, and how to account for these in a robust manner.</p><p>Our
December 2018 consultation paper (link below) set out a proposed Area Cost Adjustment
approach, which uses the best available evidence, based on journey times, to reflect
the impact of congestion in urban areas, as well as longer travel distances in rural
areas on the relative cost of providing services. The consultation closed on 21 February
and we will consider the many representations made in response, which will feed into
the next phase of this work.</p><p><a href="https://www.gov.uk/government/consultations/review-of-local-authorities-relative-needs-and-resources"
target="_blank">https://www.gov.uk/government/consultations/review-of-local-authorities-relative-needs-and-resources</a>.</p>
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