COVID-19: Local Government finance

Public Accounts Committee Closed Inquiry
Opened: 8 Feb 2021 Closed: 5 Aug 2021 Parliament page
Local authority finances are under significant pressure in the context of the COVID-19 pandemic, with central government asking local authorities to deliver many additional services on top of the cost of many existing services increasing, opportunities to implement savings programmes being disrupted, and various locally generated income streams have fallen. … Read more
18 Recommendations
8 Conclusions
1 Report
2 Oral sessions
4 Letters
2 Events
Oral evidence sessions 2 sessions
COVID-19: Local Government Finance
Alex Skinner · Department for Levelling Up, Housing and Communities Catherine Frances · Department for Levelling Up, Housing and Communities Cat Little · Cabinet Office Jeremy Pocklington CB · Ministry of Defence
COVID-19: Local Government Finance
Carol Culley · Manchester City Council Lorna Baxter · Oxfordshire County Council Martin Reeves · Solace Rob Whiteman · CIPFA
Recommendations & Conclusions
4 results
4 Recommendation Acknowledged
Fourth Report - COVID-19: Local go…
The Department has not fulfilled previous assurances that it will be transparent about financial risk...
The Department has not fulfilled previous assurances that it will be transparent about financial risk in the sector by sharing information with the National Audit Office. The Department previously told us that it would ensure the National Audit Office can … Read more
Government Response
The government agrees with the recommendation and states it is mindful of the NAO's need for information while maintaining confidentiality with local authorities. It commits to continuing engagement with the NAO to meet their needs but does not outline specific new mechanisms for sharing information or indicating sharing limitations.
HM Treasury
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15 Recommendation Acknowledged
Fourth Report - COVID-19: Local go…
The Department told us that during the early months of the pandemic it developed greater...
The Department told us that during the early months of the pandemic it developed greater structure and a stronger framework around exceptional financial support for individual authorities. Exceptional financial support is used where the Department accepts authorities face unmanageable financial … Read more
Government Response
The government agrees with the recommendation but describes its existing monitoring and response to exceptional financial support requests, noting that all capitalisation directions are published. It states it has considered its engagement with at-risk authorities and will write to the Committee in October 2021 with its response.
HM Treasury
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16 Recommendation Acknowledged
Fourth Report - COVID-19: Local go…
The Department told the NAO that sharing information on the number of authorities interested in...
The Department told the NAO that sharing information on the number of authorities interested in exceptional financial support or at risk more generally would invite public speculation on the identity of the authorities affected. However, the information the Department does … Read more
Government Response
The government agrees with the recommendation to share information with the NAO, acknowledging its statutory interest, but also stresses the need for confidentiality in discussions with local authorities and commits only to continued engagement with the NAO on how to meet its needs.
HM Treasury
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17 Recommendation Acknowledged
Fourth Report - COVID-19: Local go…
We previously discussed the provision of this type of information with the Department as part...
We previously discussed the provision of this type of information with the Department as part of our examination of the Department’s Starter Home programme. We recognised that sensitive information should not necessarily be made public, but we asked the Department … Read more
Government Response
The government agrees with the recommendation for the NAO and Parliament to be aware of sector risk, but emphasizes the need for confidential engagement with local authorities and commits only to continued engagement with the NAO to address its needs.
HM Treasury
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Government Response AI assessment · 26 of 18 classified

Total 18 recs + 8 conclusions
Correspondence 4 letters
16 Nov 2021 Correspondence from Jeremy Pocklington CB, Permanent Secretary, Department for Levelling Up, Housing and Communities, re Fourth Report of the Public Accounts Committee (PAC) from Session 2021-22, on COVID-19 Local Government Finance, dated 29 October 2021
Parliament page
29 Jun 2021 Correspondence from Tom Scholar, Permanent Secretary, HM Treasury, re Local government finance, dated 22 June 2021
Parliament page
20 Apr 2021 Correspondence from Jeremy Pocklington CB, Permanent Secretary, Ministry of Housing, Communities and Local Government, re Local Government and the Pandemic: Supplementary information, dated 15 April 2021
Parliament page
18 Mar 2021 Correspondence from Jeremy Pocklington CB, Permanent Secretary Ministry, of Housing, Communities & Local Government, re Exceptional financial support, dated 17 March 2021
Parliament page