New development: How could incentive-based sources of finance fund English local government effectively?

Planned reforms to the funding system for English local government will constrain the influence of incentive-based finance in favour of a renewed focus on needs assessment. This reflects the balance of financial pressures on English local authorities in recent years. The influence of the Business Rates Retention Scheme (BRRS), the main source of incentive funding, appears muted since its introduction in 2013, and its influence looks set to reduce further. The article explores two alternative uses of incentive funding. One is to refocus it as part of the funding package for large-scale local development or infrastructure projects. The other is to provide a share of business rates funding to England's new Mayoral Strategic Authorities, reflecting their policy responsibilities around economic growth, productivity and infrastructure.