The level of funding allocated for a range of key public services is often below the amount required to meet the needs of many poorer communities, a study has found.
The Institute for Fiscal Studies (IFS) think tank said the Government’s use of old data to distribute funding has led to significant gaps between the share some areas receive and the amount they would be given if allocations were calculated using more up-to-date estimations of local demand.
Analysis of the £245 billion available across the NHS, schools, local government, police and public health in 2022-23 showed the highest levels of funding per capita were allocated to inner London boroughs and relatively deprived areas in the North of England, including parts of Greater Manchester, Liverpool and Teesside.
The more affluent rural areas received the least funding per head.
But the study paints a more inconsistent picture when funding levels were directly compared to allocations which reflect estimated current spending needs. These were based on Government assessments updated by the IFS using new data on all areas.
NHS funding was described as “relatively well-targeted” as two-thirds of areas received allocations within 5% of their share of estimated needs due to the Government using more up-to-date information to assess demand.
