POLL: Should Rayner elevate council tax within the south to pay for tasks within the north? | Politics | News | EUROtoday

Angela Rayner is reportedly to set out plans for council tax funds collected within the south to be funnelled to the north beneath a “progressive” redistribution of native authority funding. The Deputy Prime Minister will define a brand new formulation which goals to allocate cash relying on native wants.

Ms Rayner will reportedly level to discrepancies in council tax levies between wealthier and fewer well-off elements of the nation. However, a senior determine in native authorities has mentioned such a transfer can be “polarising”.

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A spokesman for the Ministry of Housing, Communities and Local Government mentioned the present system had led to “perverse outcomes” where some councils struggle to provide basic services while others are better off.

He added: “Individual councils stay liable for setting their very own council tax ranges every year and the Government is obvious they need to put taxpayers first.”

David Phillips from the Institute for Fiscal Studies told The Times that reform was overdue.

He said it has been 20 years since we’ve had an effective system to allocate funding between councils.

Mr Phillips added: “So it’s out of whack and the modifications are going to be large.”