Question to the Ministry of Housing, Communities and Local Government:

To ask the Secretary of State for Housing, Communities and Local Government, what (a) variables and (b) indicators are included in the Fair Funding 2.0 formula; how is each factor weighted; and if he will publish the full methodology underpinning Fair Funding 2.0.

I refer you to the government response to the Fair Funding Review 2.0 The Fair Funding Review 2.0 - GOV.UK published on 20 November. The government will use relative need formulas (RNFs) to assess how much ‘need’ each local authority has in comparison to others for specific services. These formulas are a key part of how local authorities' funding allocations are calculated and, for the first time since 2013-14, they are being updated. This is something the sector has long called for and will enable the government to assess local authorities' relative demand for services more effectively. The formulas are designed to reflect the extent to which local characteristics are likely to influence demand for services. Each RNF is constructed using consistent principles, drawing on data such as demographic indicators and applying statistical techniques to weight variables according to their influence on service demand. The government will include technical annexes for each formula at the provisional Local Government Finance Settlement, which is due for publication this month.