Local Authority Financial Sustainability and the Section 114 Regime

Housing, Communities and Local Government Committee Closed Inquiry
Opened: 1 Dec 2020 Closed: 25 Oct 2021 Parliament page
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. Read more
9 Recommendations
11 Conclusions
1 Report
3 Oral sessions
3 Events
Activity timeline 5 events
21 Oct
2021
Report published
19 Jul
2021
Report published
25 Mar
2021
Oral evidence
22 Feb
2021
Oral evidence
8 Feb
2021
Oral evidence
Oral evidence sessions 3 sessions
25 Mar 2021
View on parliament.uk
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
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
Clear
3 Conclusion Deferred
Second Report - Local authority fi…
The question of the BRRS is closely related to the debate about the longstanding role...
The question of the BRRS is closely related to the debate about the longstanding role of equalisation in how local government in England is funded. Whilst the purpose of equalisation is to ensure fairness between councils, there is little agreement … Read more
Government Response
The government has deferred decisions on local government finance reform, including the BRRS and equalisation rules, to an ongoing Spending Review, citing the need to assess the pandemic's impact.
Ministry of Housing, Communities and Local Government
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9 Conclusion Deferred
Second Report - Local authority fi…
We understand the Government’s reasons for resorting to a one-year spending review last year, but...
We understand the Government’s reasons for resorting to a one-year spending review last year, but we note it followed a one-year spending review in 2019 and that the last multi-year spending review came in 2015. Local government cannot manage its … Read more
Government Response
The government agrees that multi-year settlements provide certainty for effective planning. However, the approach to the next settlement will be informed by the ongoing Spending Review, and the government is exploring opportunities to simplify the funding system.
Ministry of Housing, Communities and Local Government
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11 Recommendation Deferred
Second Report - Local authority fi…
The next financial settlement for local government must be a multi-year settlement.
The next financial settlement for local government must be a multi-year settlement. The Government should also consolidate the number of small and ring-fenced grants, which can limit local authorities’ ability to provide services flexibly, and should reduce the number of … Read more
Government Response
The government agrees that multi-year settlements provide certainty and is exploring opportunities to simplify the funding system, but defers a decision on the next settlement being multi-year, stating it will be informed by the ongoing Spending Review.
Ministry of Housing, Communities and Local Government
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Government Response AI assessment · 20 of 9 classified
Accepted 5
Accepted in Part 4
Acknowledged 3
Deferred 3
Rejected 5
Total 9 recs + 11 conclusions