Latest Public Sector News

31.10.18

Social mobility of counties fettered by ‘outdated’ and unfair council funding system

An inquiry has found that the least socially mobile areas in England are counties, held back by “outdated” and “inequitable” council funding and the false idea that they are ‘well-off.’ 

These are the finding of ‘Social Mobility in Counties,’ a report carried out by the County All-Party-Parliamentary Group (APPG) and County Councils Network (CCN), which states that the growing financial strain on local authorities and current method of funding has led to a “cycle of low social mobility.”

Eight of the bottom 10 least socially mobile parts of England are county areas and are “overwhelmingly” rural and coastal, according to the report.

Counties are often perceived as being affluent and this perception, MPs say, has “masked deep-seated socio-economic challenges and deprivation in shire counties.”

It is outlined in the report that, on average, London councils receive £482 per head and metropolitan boroughs and cities get £351 per head, whereas county areas only see £182 per head.

Earlier this year, analysis by the CCN revealed that councils across England needed to collectively reduce spending by almost £1bn by next February to balance the books.

This strain on local government finances has led to bare-bones ‘core offers’ for local services at risk of becoming the norm. This has fettered a county council’s abilities to provide services that promote social mobility, with the report finding that transport networks in particular are a “major hinderance” to counties’ social mobility.

David Phillips, associate director at the Institute for Fiscal Studies, recently wrote in the latest issue of PSE to discuss current health of local government finance, and how a better formula could help manage this situation.

The report also features a new ‘social mobility index’ drawn up by thinktank Localis, which draws on the Social Mobility Commission research and employment, skills, early years, and education data.

The index found no indication of a north/south divide in social mobility, but instead, reiterating the report’s finding, found a clear city/rural divide.

Rural areas such as Devon, Kent, Cumbria and Durham, as well as coastal towns like Dorset and Norfolk, are all in the bottom 10 on the social mobility index.

A lack of employment opportunities and rural remoteness giving way to a ‘brain drain’ as youngsters move away to university cities were amongst the factors that caused this negative trend. 

MPs are therefore calling for a fairer funding system, something the government is currently reviewing, with a new system expected to be introduced by 2020. It was also recommended that the government devolve skills and budget powers, similar to that of city region and metro mayors, to counties.

Peter Aldous MP, chairman of the County APPG, said: “An outdated and inequitable method of funding local authorities has disproportionally channelled funding towards London and the major cities; holding back social mobility in county areas, and embedding a cycle of low life chances for residents. This is unfair.

“Funding is only part of the answer; today’s report showcases the innovative work county authorities are doing to raise social mobility in their areas, but their ambitions are hamstrung. If we are to bridge rural vs urban divide in social mobility, then government needs to ensure that counties have fair and sustainable funding in future, backed by the powers to genuinely make a difference.”

Jonathan Werran, chief executive of Localis, added: “Our research for the commission shows young people in London are pulling away from the rest of the country in opportunity and educational outcomes as soon as they enter school.

“Young people growing up in coastal and rural areas of England are then further constrained by poor skills infrastructure and in many cases weak prospects for finding good local jobs that pay decent wages. 

“Devolution of the adult skills budgets to all strategic authorities, and a more ambitious reconfiguration of local political economies represent two main opportunities for boosting social mobility and delivering the promise of an inclusive growth that can help bridge today’s unacceptably wide urban-rural divide.”

Top image: georgeclerk

 

Enjoying PSE? Subscribe here to receive our weekly news updates or click here to receive a copy of the magazine!

Comments

There are no comments. Why not be the first?

Add your comment

 

related

public sector executive tv

more videos >

last word

The importance of openness after Grenfell

The importance of openness after Grenfell

Following the recent Grenfell Tower tragedy, Lord Porter, chairman of the LGA, argues that if the public are going to have faith in the safety testing process then everything must be out in the open more > more last word articles >

public sector focus

View all News

comment

A fifth of public sector workers have never received a thank you from the people they serve

13/06/2019A fifth of public sector workers have never received a thank you from the people they serve

A fifth of the country’s public sector workers say they have NEVER re... more >
Time to build a truly northern powerhouse

11/06/2019Time to build a truly northern powerhouse

Jack Hunter, a research fellow at think tank IPPR North, discusses how to u... more >

interviews

Artificial intelligence: the devil is in the data

17/12/2018Artificial intelligence: the devil is in the data

It’s no secret that the public sector and its service providers need ... more >

the raven's daily blog

New rules to change the future of Social Value

05/06/2019New rules to change the future of Social Value

The government has announced the introduction of new rules to change the future of social value and make the way housing developers stump up the money for infrastructure both ... more >
read more blog posts from 'the raven' >

editor's comment

25/10/2017Take a moment to celebrate

Devolution, restructuring and widespread service reform: from a journalist’s perspective, it’s never been a more exciting time to report on the public sector. That’s why I could not be more thrilled to be taking over the reins at PSE at this key juncture. There could not be a feature that more perfectly encapsulates this feeling of imminent change than the article James Palmer, mayor of Cambridgeshire and Peterborough, has penned for us on p28. In it, he highlights... read more >