Brexit

European Structural and Investment (ESI) funds help to pay for initiatives supporting business development, research and development, investment in digital and green infrastructure, as well skills and training interventions and support for job-seekers. But with the UK having formally departed the European Union, the country will stop receiving new ESI funding at the end of 2020. Thus, for 2021 and beyond, the UK government faces choices over what to replace ESI funding with.

In this presentation given the at the Local Government's Winter Finance Conference on 6th January 2020, David Phillips looks at the outlook for local government funding, arguing that unless current plans are topped up, local government could face a renewed funding squeeze from 2021-22 onwards.

It seems unlikely that business rates and council tax will keep pace with costs and demand writes David Phillips in this article for the Local Government Chronicle.

In this article for the Municipal Journal, David Phillips examines the choices the next Government will face, including whether (and how much) to raise taxes. What it decides could have big implications for councils and those who rely on their services.

The Spending Round announcement last week seems a positive move for the sector on the face of it, but raises questions over the the future balance between central control and local discretion writes David Phillips in this article for the MJ.

A presentation on recent trends and the outlook for local government spending. It includes a discussion of local tax devolution options, and the potential impacts of the ongoing Fair Funding Review.

In this article, David Phillips argues that pivotal choices loom on local government funding, but if we don’t address what we expect from our councils we risk a system that fails to meet our objectives.

We cannot have our cake and eat it. Decisions have consequences, and so does failure to decide. Pretending that there are no consequences won’t make them go away.

The value of the pound has changed a lot over the past three years - making us all a little poorer. Back in December 2015, £1 would buy you about €1.40. Today it will get you nearer €1.14. It has suffered a similar fate against most major currencies, losing about 15% of its value over that time. A big part of the fall occurred literally overnight, once the result of the EU referendum became apparent in the early hours of 24 June 2016. That's a big change, but what does it mean for all of us?

How is local government funding changing? And what might the implications for children's services be? In this presentation for the Office of the Children's Commissioner of England, IFS Associate Director David Phillips looked at the trends in local government spending over time, across the country, and across services, paying particular attention to children's services. He also looked at what funding reforms (such as shifts to funding more services via business rates, and the so-called Fair Funding Review) mean and how they could impact different areas and services.

What does the fiscal and funding outlook for English councils look like? In this presentation for the LGA's annual finance conference, IFS Associate Director David Phillips looked at recent trends, the future outlook, and interactions with funding reforms. It shows that despite the end of overall budget cuts, councils facing both uncertainty about future funding levels and the likelihood that local tax revenues will not keep pace with rising costs. 2019 will be a big year for decisions - with important ramifications for the 2020s and beyond.