The Government calculates the level of Revenue Support Grant for councils using a formula-based method, with population size and school pupil numbers being the most significant factors in the calculation. However, given that Wolverhampton's population has declined slightly in recent years, the Council's grant from the Government has fallen from the amount we would have received had the number of residents remained constant or increased. The reduction in Government grant is only one of many factors that create budget pressures for the Council. Another example is the requirement for local councils to continuously improve all their services as part of the Government's Best Value initiative and to match the performance of the 'very best' councils throughout the country. This places pressure on the Council to strike the right balance between cost and quality and how to 'get more for less'.
Many people find local government finance difficult to understand.
To try to make it simpler, and to provide greater fairness, stability and predictability, the Government has produced a Green Paper for consultation that sets out a number of ways to make improvements. Legislation to implement the Government's final decision on these matters is likely to be introduced early in the new Parliamentary session. Wolverhampton Council, like all other local councils, eagerly awaits the outcome of the Government's deliberations. Please read our disclaimer .