<p>The Government is undertaking a review of the relative needs and resources of local authorities in England, with a view to setting fresh baseline funding levels in 2020-21. We are working closely with local government representatives and others to consider the drivers of local authorities’ costs. We are also looking at the resources available locally to fund services, and how we should account for these in a way that draws a more transparent and understandable link between local circumstances and resource allocations.</p><p>We are making good progress in collaboration with the sector and recently launched a consultation exercise which will close on 21 February. Details of the consultation are available online:<br> <br> <a href="https://www.gov.uk/government/consultations/review-of-local-authorities-relative-needs-and-resources" target="_blank">https://www.gov.uk/government/consultations/review-of-local-authorities-relative-needs-and-resources</a>.</p>