Local Government Finance Settlement 2013/14 and 2014/15 – initial analysis

On 19 December 2012 the Secretary of State for Communities and Local Government made a statement announcing provisional figures for the 2013/14 and 2014/15 local government finance settlements. These are the first settlements to be announced since the introduction of the Business Rates Retention Scheme (BRRS).

The statutory period of consultation will end on 15 January 2013 and the final settlement figures are likely to be confirmed a few weeks later.

The total central government funding for all local authorities in England, Aggregate External Finance (AEF), will fall by 3.9% in 2013/14 and 8.6% in 2014/15. This does not include ring-fenced grants for frontline education.

Start-up funding assessments for local authorities in England will fall by 3.9% in 2013/14 and 8.5% in 2014/15.

Revenue spending power in England will fall by 1.7% in 2013/14 and 3.8% in 2014/15. in England will fall by 3.9% in 2013/14 and 8.5% in 2014/15.