Thread by @TheIFS

A decade of funding cuts and reforms have radically reshaped English councils’ revenues and spending, with potentially significant implications for the future.

Today, we've published our first annual report on English #localgov funding: ifs.org.uk/publications/1…

Cuts have been larger in poorer parts of the country.

The most deprived tenth of councils cut spending per person by 31% (or £432 per person) between 2009–10 and 2019–20.

The least deprived tenth of councils had to make cuts of only 16% (or £134 per person).

The local government funding system still redistributes from less deprived to more deprived areas – but less so than a decade ago.

The next government will need to take a decision on whether to entrench or undo this change.

The proportion of councils’ revenues accounted for by council tax has increased from just over a third to almost half. Council tax bills are up 8% above inflation in last four years.

Another 30% of councils' revenues comes from retained business rates.

Smaller tax bases mean that the most deprived councils raise an average of £336 per resident in council tax - it’s £599 per resident for the least deprived councils.

It will be harder for deprived councils to meet rising costs from council tax increases in future.

This year’s council budgets imply a 2% increase in spending on children’s #socialcare per resident since 2009-10.

In contrast, spending on housing, culture and planning and development is down over 50% per resident.

Growing numbers of elderly and disabled people, and rising wage costs, mean adult #socialcare services will need to take up a growing share of councils’ tax revenues.

To meet social care pressures without squeezing other services, councils may need billions more in funding – even if council tax rises at 4% a year.

Read more in our first annual report on English #localgov funding: ifs.org.uk/publications/1…