
Policy area: Local government finance
Date of publication: 16 January 2012
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Following the July 2011 consultation on the basis for the decision on the appropriate amount of Academies funding transfer for 2011-12 and 2012-13, the Secretary of State for Education, in consultation with the Secretary of State for Communities and Local Government, has reached a "minded to" decision on the way forward in relation to the calculation and recovery arrangements for the transfer for 2011-12 and 2012-13. A second consultation has followed setting out the "minded to" decision which the Secretary of State has reached.
We have responded to this second consultation in which we believe strongly that the methodology to calculate the transfer continues to be fundamentally flawed in certain key respects. Actual savings to local authorities are not being used to quantify the amount to be transferred from local government therefore government is not complying with its own commitment to properly assess and fully fund all new burdens on local authorities in order to keep the pressure on council tax to a minimum.
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