The latest consultation on the fair funding review has generated much debate over the last few weeks. Casting our mind back two years, everyone in the sector agreed that the current system was complex, opaque and outdated. It was broadly accepted that any new system must be built on reducing this complexity and distributing funding according to a small number of formulae and key cost drivers. The Government proposals clearly build on these principles - but if the sector is to secure the implementation of the review, compromises along the way will be necessary. County leaders have shown their willingness in this regard - accepting the downgrading of sparsity from a key cost driver to the area cost adjustment, the inclusion of density and, most recently, their willingness to consider the inclusion of deprivation in the foundation formula In fixing a broken system, change will be necessary. Naturally, some will gain in some elements, and some will lose in other elements - but that is the nature of change. With so much still to be decided, it is premature to conclude that any particular part of the sector will be comprehensive 'winners' from the review. I predict that the outcome will be much more nuanced than some have suggested, both within and between different types of councils and in different parts of the country.
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