Local Authority Financial Sustainability and the Section 114 Regime
Housing, Communities and Local Government Committee
Closed
Inquiry
This inquiry will consider the scale and depth of financial sustainability issues within local authorities with the potential to lead to the issuing of S114 notices, including the effect of commercial investments and the impact of Covid-19, and the role of central government in helping councils avoid this outcome.
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9
Recommendations
11
Conclusions
1
Report
3
Oral sessions
3
Events
Activity timeline 5 events
21 Oct
2021
2021
19 Jul
2021
2021
25 Mar
2021
2021
Oral evidence
22 Feb
2021
2021
Oral evidence
8 Feb
2021
2021
Oral evidence
Oral evidence sessions 3 sessions
25 Mar 2021
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Oral evidence
Chris Buss · Croydon Council
Cllr Hamida Ali · Croydon Council
Katherine Kerswell · Croydon Council
Sarah Ironmonger · Grant Thornton
22 Feb 2021
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Oral evidence
Alex Skinner · Department for Levelling Up, Housing and Communities
Luke Hall · Ministry of Housing, Communities and Local Government
8 Feb 2021
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Oral evidence
Cllr Richard Watts · Local Government Association (LGA)
Rob Whiteman · CIPFA
Reports 1 report · click to expand
| Title | HC No. | Published | Items | Response |
|---|---|---|---|---|
| Second Report - Local authority financial sustainability and the… | HC 33 | 19 Jul 2021 | 20 | Responded |
Recommendations & Conclusions
3 results
7
Conclusion
Acknowledged
Second Report - Local authority fi…
The funding base of local government in England is very narrow.
The funding base of local government in England is very narrow. As the pandemic has highlighted, revenue derived from council tax and business rates is also insecure. As concluded by our predecessor Committee, greater fiscal autonomy could contribute to local …
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Government Response
The government defends the current charging regime and highlights existing local flexibilities for council tax. It states that the Chancellor’s Fundamental Review of Business Rates is considering reform options, including greater local flexibility, and will conclude in Autumn.
Ministry of Housing, Communities and Local Government
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10
Conclusion
Acknowledged
Second Report - Local authority fi…
The proliferation in recent years of small, often one-off and ring-fenced grants, sometimes involving a...
The proliferation in recent years of small, often one-off and ring-fenced grants, sometimes involving a competitive bidding process, and the uncertainty around such funding, can hinder robust financial planning and management by local authorities, as has been acknowledged by the …
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Government Response
The government agrees that a stable funding environment is important and recognizes the challenges of multiple competitive funds. It states it is exploring opportunities to simplify the system, while also noting that ringfences and competitions can be helpful.
Ministry of Housing, Communities and Local Government
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13
Recommendation
Acknowledged
Second Report - Local authority fi…
We urge the Government to consider ways of mitigating the uneven financial support across local...
We urge the Government to consider ways of mitigating the uneven financial support across local authorities and provide greater certainty to councils over what future costs incurred as a result of the pandemic it intends to cover. (Paragraph 55) Local …
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Government Response
The government states it has committed over £12 billion in funding and distributed it based on need. It is using monitoring and engagement to inform the ongoing Spending Review and will continue to work with individual authorities and keep the situation under review, without committing to specific new ways of providing future certainty.
Ministry of Housing, Communities and Local Government
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