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Future funding outlook 2014

In 2012 and again in 2013, the Local Government Association (LGA) published models of future funding for councils. The aim of these papers was to present a credible analysis of the challenges facing local councils in the current and future spending review period. They highlighted the large and growing funding gap for English local government caused by spending pressures and funding reductions. This current third iteration of the model is a further refinement on previous modelling and again shows a growing funding gap, although with each year that passes local government continues to close the gap and deliver a balanced budget as is its statutory duty. projections of total annual net revenue spending in ten principal service blocks within council budgets over the period to 2019/20. projections of council tax, business rates, grant and other income streams over the period to 2019/20. We have projected likely expenditure pressures in all service areas, while recognising that councils are actively taking steps to mitigate cost pressures by reforming the way they deliver services. LGA research suggests that this has been achieved to date partly through innovative methods of service delivery, but partly by a reduction in the level of services councils can offer3 .

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Future funding outlook 2014