The Funding and Sustainability of Local Government Finance
Housing, Communities and Local Government Committee
Closed
Inquiry
As Government seeks to reform local government finance, this inquiry will consider whether the local government finance system is fit for purpose and assess how it can meet the needs of local authorities and service users. It will explore how much control local authorities have over their own finances and …
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22
Recommendations
36
Conclusions
1
Report
4
Oral sessions
4
Events
Activity timeline 10 events
21 Oct
2025
2025
23 Jul
2025
2025
7 May
2025
2025
Oral evidence
7 May
2025
2025
Formal meeting (oral evidence session) · The Thatcher Room, Portcullis House
8 Apr
2025
2025
Oral evidence
8 Apr
2025
2025
Formal meeting (oral evidence session) · The Wilson Room, Portcullis House
11 Mar
2025
2025
Oral evidence
11 Mar
2025
2025
Formal meeting (oral evidence session) · The Thatcher Room, Portcullis House
11 Feb
2025
2025
Oral evidence
11 Feb
2025
2025
Formal meeting (oral evidence session) · The Grimond Room, Portcullis House
Oral evidence sessions 4 sessions
7 May 2025
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Oral Evidence
Jim McMahon MP · Ministry of Housing, Communities and Local Government
Nico Heslop · Ministry of Housing, Communities and Local Government
8 Apr 2025
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Oral Evidence
Abdool Kara · National Audit Office
Dan Bates · OnTor Limited
Gareth Davies · National Audit Office
Jane Pearson · Ribble Valley Borough Council
Owen Mapley · Chartered Institute of Public Finance and Accountancy (CIPFA)
Rob Powell · Warwickshire County Council
Vicky Davis · National Audit Office
11 Mar 2025
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Oral Evidence
Councillor Barry Lewis · County Councils Network
Councillor Bill Revans · Somerset Council
Councillor Grace Williams · London Councils
Councillor Jeremy Newmark · District Councils Network
Councillor Neghat Khan · Nottingham City Council
Councillor Peter Marland · Local Government Association
Councillor Tony Dyer · Bristol City Council
11 Feb 2025
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Oral Evidence
Aileen Murphie
Charlotte Pickles · Reform
David Phillips · Institute for Fiscal Studies
Jonathan Carr-West · Local Government Information Unit
Professor Andy Pike · Newcastle University
Professor Tony Travers · London School of Economics
Stuart Hoddinott · Institute for Government
Reports 1 report · click to expand
| Title | HC No. | Published | Items | Response |
|---|---|---|---|---|
| 2nd Report - The Funding and Sustainability of Local Government … | HC 514 | 23 Jul 2025 | 58 | Responded |
Recommendations & Conclusions
3 results
32
Recommendation
Not Addressed
2nd Report - The Funding and Susta…
Consider options for reforming and improving efficiency of home-to-school transport services
As part of its ongoing service reform for the SEND sector, the Ministry must consider options for reforming or improving the efficiency of home-to-school transport services. Potential options include wider use of sharing transport, and capital investment to enable councils …
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Government Response
The government attributes rising transport costs to challenges in the wider SEND system and outlines significant funding for SEND reform and capital for school facilities, which it states will indirectly reduce the need for long journeys, but does not directly address reforming or improving the efficiency of home-to-school transport services.
Ministry of Housing, Communities and Local Government
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39
Conclusion
Not Addressed
2nd Report - The Funding and Susta…
Using 1991 property values for council tax is increasingly inappropriate.
Using property values from 1991, or proxy 1991 values where actual values are not available, is inappropriate and becoming increasingly inappropriate as time goes on. (Conclusion, Paragraph 155)
Government Response
The government notes the broader recommendation to reform council tax but states it has no plans for such reform, though it is focusing on how council tax income is accounted for in funding proposals, without addressing the inappropriateness of using 1991 property values.
Ministry of Housing, Communities and Local Government
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49
Conclusion
Not Addressed
2nd Report - The Funding and Susta…
Section 114 notices prove unproductive for long-term local authority financial unsustainability.
The process of issuing and responding to a section 114 notice is not a productive solution to financial unsustainability caused by long-term underfunding and increasing responsibilities. The need to avoid a section 114 notice can itself lead to poor financial …
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Government Response
The government states s114 notices are part of a wider system but acknowledges that financial flexibilities can help manage pressures, having invited views on such flexibilities and promising further detail in the autumn, without directly addressing the committee's criticism of the s114 process itself.
Ministry of Housing, Communities and Local Government
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