Summary
This analysis demonstrates where there is more significant disaggregation, with more unitary authorities created, there is the potential to introduce uneven financial risk related to deficits in the High Needs Block.
This analysis demonstrates where there is more significant disaggregation, with more unitary authorities created, there is the potential to introduce uneven financial risk related to deficits in the High Needs Block. Avoiding or minimising levels of disaggregation will mitigate this risk. However, where disaggregation is required, the risk passed to new authorities must be fully evaluated, and financial mitigation proposed. Risk levels will be highly sensitive to the way in which current High Needs Block deficits are apportioned amongst newly formed authorities, and this will need to be given considerable thought, in relation to estimated High Needs Block apportionments and budgets for those new authorities. Perhaps more fundamentally, this analysis provides further incentive to determine a long term solution for accumulated deficits in the High Needs Block, and to seek a resolution to this before new authorities are created and before deficits have to be passed on to newly formed authorities.
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