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<p>The most recent assessment of local authorities’ relative needs and resources took
place in 2013-14 alongside the introduction of the 50 per cent business rates retention
system. At this point the demand for local services was assessed through funding formulae
that used projected local population in 2013, as well as the relative needs of those
populations including factors such as deprivation.</p><p>At present the Government
is carrying out a fair funding review of local authorities’ relative needs and resources,
and we are working closely with the Local Government Association and representatives
from across local government to ensure that we consider all the issues that impact
on authorities’ relative need to spend on services and their capacity to fund these
from local resources.</p><p>Amongst the issues we will consider are the impact of
population growth, deprivation, as well as specific geographical factors such as rurality
and area-related costs.</p>
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