News

Pixel - MTFP model v5.12 update

23rd April 2024

Our video takes you through the changes we have made to the MTFP model.  The model is available on our website: https://pixelfinancial.co.uk/s... 

CTR1 2024-25. Band D and taxbase updates.

Second-home council tax premium. From 2025-26 onwards based on second-home data in the CTB1 October 2023. Decision required 12 month in advance.

Additional year for New Homes Bonus (NHB) in 2025-26. Sixth one-off payment if it is continued into 2025-26. Estimates based on CTB1 October 2023, with updated Band D (£2,171) and no change in threshold (0.4%).

Fire grants. These have now been added to the model, with forecasts for future years.

Changes to presentation in “Systems Assumptions” tab. More flexibility about forecasts in each year from 2025-26 to 2030-31. No change in default assumptions (0% SFA, £500m social care grant, threshold for Band D).

Removed 2023 Revaluation calculations. Data now from final settlement adjustments applied to the top-ups and tariffs.

Minimum Funding Guarantee. Updated taxbase assumptions. No change to our assumption for the threshold itself (0% in 2025-26, compared to 4% in 2024-25). 

Some amendments to the potential impact of the funding reforms on local government. (a) re-introduction of the damping methodology spreading losses over 4 or 5 years. (b) option to scale-back gains from the business rates baseline reset.

NEW - Pixel’s strategic finance report

25th March 2024

Pixel has developed a new strategic finance report that can support your authority's financial planning and budgeting process. It uses a range of forecasting tools and benchmarking analysis to deliver insights into your authority’s financial position and prospects. It also goes one step further by providing forecasts of expenditure, funding, and medium-term budget sustainability.

Our analysis and benchmarking tools that can give real insight into both funding and spending. Using the tools we already have within the Funding Advisory Service (FAS), we have taken them a step further so that they give a range of potential funding forecasts (to 2030-31). And by widening our analysis to include expenditure, we can put together our spending and funding forecasts to give an insight into your authority’s medium-term financial viability.

You can use our report as the starting point for your medium-term financial planning – or as a way of challenging your existing budget plans. Our report provides an independent view of your medium-term financial position that can be used with Members, senior officers or other external stakeholders.

You can find out more about the report and analysis tools that are available in the attached brochure, or contact Adrian on 0796 998 0016 or adrian@pixelfinancial.co.uk 

Pixel MTFP Plus brochure

Pixel analysis used in national reporting of pressures on local government

20th March 2024

Pixel's financial analysis was used in articles in the national press and in BBC's Panorama.  The research was commissioned by the County Councils Network's.

Pixel is mentioned in the BBC article published alongside the release of the Panorama programme: 

Vital services or financial ruin? England's town hall dilemma - BBC News

Our research was also cited in an article in the Times: https://www.thetimes.co.uk/art...

"... analysis of council budgets by Pixel Financial Management for the CCN finds that social care and children's services account for 65% of local authority spending, up from 57% in 2014".  

Room151 reporting of Pixel/ LGImprove webinar

28th November 2023

Blog: Can local government cope with fiscal devolution?

21st March 2023

https://open.substack.com/pub/...

Fiscal devolution is undoubtedly a good thing for local government but will require the sector to change its perceptions about the relationship between needs and tax incentives.  The funding system is going to have to change to accommodate local authorities and mayoral combined authorities having control over taxation revenues - and keeping more of the growth in those revenues.  Some form of equalisation of both needs and resources is going to have to continue.  A re-designed funding system will have to be much more explicit about the fiscal transfers that will be required.  There will need to be judgements about the balance between needs and incentives within a future funding system.  

Councils overfunded for COVID pressures last year but ‘chronic’ financial pressures remain’

25th January 2022

Our article provides wider context to the report from the Institute for Fiscal Studies (IFS) that local government received more funding for COVID pressures in 2020-21 than was actually spent.  This is correct - although the amount can be disputed - but it is not sufficient to fund later costs and the structural under-funding of the sector. 

Room 151 article

14th June 2021

Our latest article explores how difficult it is to make financial forecasts for 2022-23. The uncertainty might be with us for some time yet. 

Looking ahead to local government funding reforms

22nd February 2021

Media/ press: Adrian has published an article in the Municipal Journal about whether the New Homes Bonus consultation can tell us anything about the local government funding reforms.

Read the full article on the MJ website

Local government funding reforms

29th January 2021

Media/ press: Adrian has published an article on the local government funding reforms in Room 151:

https://www.room151.co.uk/trea...

Pixel - council tax survey 2021-22

7th January 2021

Pixel undertakes a council tax Band D survey every year. Please use the link to take you through the survey. Initial results can be seen on Google Forms but we will also periodically provide updates:

https://forms.gle/RZCHG9dDX4BpVp84A