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<p>Funding for local government services, including children’s services, is set at
the Spending Review. The Chancellor has announced that the next Spending Review will
be this year, and decisions about the future funding of local government will be taken
in the round.</p><p>We are working with the Department for Education (DfE) and the
sector to develop an understanding of children’s services costs and pressures, and
to help local authorities innovate and reform services to achieve better quality and
efficiency.</p><p>In preparation for the Spending Review, and as part of the Government’s
review of relative needs and resources, new, up-to-date formulas are being developed
to ensure funding distribution to councils is based on the best available evidence.
DfE and MHCLG have commissioned an ambitious data research project from independent
contractors to inform this work.</p>
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