CCN, SCT and ACCE: Fair Funding Review 2.0 consultation response

This joint consultation response from the County Councils Network (CCN), Society of County Treasures and the Association of County Chief Executives outlines their analysis of the government’s Fair Funding Review (FFR) 2.0 proposals.

The response welcomed efforts to modernise funding system based on outdated formulae, and recognised that several elements of the needs assessment represent technical improvements, including updates to the adult social care formula, home‑to‑school transport formula, and rural cost adjustments.  

However, the CCN warns that the proposals, as currently designed, risk creating significant financial instability for many county and rural unitary councils. Modelling undertaken for the consultation response by Pixel Financial Management suggests wide variations in outcomes, with a substantial cohort of county councils and unitary councils facing grant reductions, increased reliance on council tax, and unsustainable pressures amid rising service demand and existing funding gaps.  

Key arguments put forward in the consultation response include:  

• The CCN supports evidence‑based reforms, including the adult social care formula, home‑to‑school transport formula and new remoteness and accessibility adjustments.  
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• Pixel modelling shows 16 CCN councils face grant reductions totalling £470m, with increases in Core Spending Power almost entirely dependent on council tax rises.  
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• Across 38 CCN councils, grant funding rises by only £374m, with 90% of CSP growth reliant on 5% council tax increases.
   
• Full 100% resource equalisation results in over £400m in additional losses for 32 CCN councils  
  
• Lack of government exemplifications severely restricts councils’ ability to assess financial impacts.  

The CCN’s, ACCE’s and SCT’s recommendations to government include:

• Provide significant additional funding to support implementation and reduce reliance on council tax.  
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• Reduce the level of council tax equalisation and amend assumed collection rates.  
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• Improve transparency, including publishing full financial exemplifications.  
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• Revisit damping and transition arrangements, potentially extending timelines to mitigate the impact.  
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• Review children’s services formula and deprivation weightings with clearer evidence to ensure they are as good as possible.