The MP for Wokingham has urged for the system of funding for local authorities to be changed in Parliament.

Clive Jones asked a question to the minister for housing, communities and local government in the House of Commons yesterday (September 2).

The Liberal Democrat, who led Wokingham Borough Council for a year, highlighted how the authority is the lowest funded per head in the country. Wokingham currently receives around £30m below the national average, because it is perceived as an area with low deprivation.

Mr Jones said: “I understand that there will be a major review of local government funding next year.

“Will this review look at the actual needs and costs faced by local authorities, as opposed to the current methodology of allocating funding that is based on historical data?”

The MP added that this data is ‘disproportionately skewed by simplistic measures of deprivation’.

In response, Jim McMahon, minister for housing, communities and local government said: “Any fair reform of course has to address the range of challenges local authorities face. Whether that’s their local tax base and how much they can realistically generate from their local communities and business, and also the cost-of-service delivery and demand within the local community.”

Councils get their money from a mixture of government grants, council tax and business rates. Many councils across England have reported large overspends and some have even declared bankruptcy.

The minister assured Mr Jones that those factors will be taken into account during the review, which will take place next year.