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Midlands and northern UK councils warn a new funding formula favoring London could cost them £300M and cut vital services.
Urban councils in England’s Midlands and north are warning of severe funding losses due to a last-minute government change that would increase housing costs’ weight in measuring deprivation.
The shift, expected October 30, could redirect hundreds of millions in grants to London, where high property prices inflate funding metrics, despite lower levels of need.
The Special Interest Group of Municipal Authorities (Sigoma), representing 50 non-London councils, calls the move flawed and unfair, arguing it rewards economic prosperity over genuine deprivation.
The group also opposes a proposed remoteness adjustment for rural areas, citing lack of evidence and potential £300 million loss for urban communities.
Councils, already facing cuts 25% worse than average, warn the changes will erode frontline services like street cleaning and highway maintenance, worsening regional inequalities.
Los consejos de Midlands y del norte del Reino Unido advierten que una nueva fórmula de financiación que favorezca a Londres podría costarles 300 millones de libras y recortar servicios vitales.