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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 consider
the drivers of local authorities’ costs, the resources available locally to fund 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>In December 2018
the Government published a consultation detailing its interim analysis and conclusions,
and which set out its proposed approach to assessing the relative needs and resources
of local authorities. We received over 300 responses to this consultation and are
considering these responses carefully, before we take further decisions on the shape
of the review. This is an ongoing process and as such, the analysis is not yet complete.
However, the Government recognises the need for transparency, a key principle of the
review, and intends to publish further detail on its proposals in due course.</p>
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