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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Clear

Recommendations & Conclusions

3 results
3 Conclusion Deferred
Para 25
The question of the BRRS is closely related to the debate about the longstanding role...
Conclusion
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 Summary
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
Para 42
We understand the Government’s reasons for resorting to a one-year spending review last year, but...
Conclusion
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 Summary
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
The next financial settlement for local government must be a multi-year settlement.
Recommendation
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 Summary
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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