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<p>The Government is conducting 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 consider
the drivers of local authorities’ costs, the local resources available to them to
fund local services, and how we should account for these in a way that draws a more
transparent and understandable link between local circumstances and resource allocations.</p><p>Alongside
the provisional local government finance settlement in December 2017, the Government
announced its intention to work towards implementing the next phase of business rates
retention reforms in 2020-21. This announcement coincided with the publication of
a consultation, which set out our proposed approach to the review.</p><p>Whilst the
work of the review has focussed initially on the services that are currently funded
through the local government finance settlement, we will consider any additional responsibilities
that are devolved to local government as a result of business rates retention on a
case-by-case basis. We aim to publish a further consultation later this year.</p>
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