Local Government Finance: Rural Areas
The question
To ask the Secretary of State for Housing, Communities and Local Government, what the evidential basis is for the inclusion of the Remoteness Adjustment within the Area Cost Adjustment of proposed funding formulas.
Answered by Alison McGovern
On Thursday 20 November, we published the government response to the Fair Funding Review 2.0, which sets out the government’s plan to introduce a fairer and evidence-led funding system. In doing so, we will target a greater proportion of grant funding towards the most deprived places which need it most, ensuring the best value for money for government and taxpayers.
We will apply a remoteness adjustment to the Adult Social Care Formula, but not to formulas more broadly. The government recognised in the last consultation the case in principle for the impact of a remoteness adjustment on costs.
On balance, taking into consideration the available evidence and the views of stakeholders, the government has made a judgement that remoteness should be accounted for when assessing the cost of delivering adult social care services.
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