Second Report - Local authority financial sustainability and the section 114 regime

Select Committee
Housing, Communities and Local Government Committee HC 33 19 July 2021
Report Status Government responded
Conclusions & Recommendations 20 items (9 recs)
Source View on Parliament website
Government Response (AI assessment · 20 of 20 classified)
Accepted 5
Accepted in Part 4
Acknowledged 3
Deferred 3
Rejected 5
Government response
Local authority financial sustainability and the Section 114 regime: Government response to the Select Committee report · published 21 Oct 2021
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Recommendations & Conclusions

3 results
7 Conclusion Acknowledged
Para 36
The funding base of local government in England is very narrow.
Conclusion
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 … Read more
Government Response Summary
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
The proliferation in recent years of small, often one-off and ring-fenced grants, sometimes involving a...
Conclusion
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 … Read more
Government Response Summary
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
We urge the Government to consider ways of mitigating the uneven financial support across local...
Recommendation
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 … Read more
Government Response Summary
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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