UK Inquiry Tracker

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

Activity timeline 8 events

16 Nov
2021

Correspondence

Correspondence from Jeremy Pocklington CB, Permanent Secretary, Department for Levelling Up, Housing and Communities, re Fourth Report of t…

2 Sep
2021

Report published

Treasury minutes: Government response to the Committee of Public Accounts on the Fourth report from Session 2021-22

29 Jun
2021

Correspondence

Correspondence from Tom Scholar, Permanent Secretary, HM Treasury, re Local government finance, dated 22 June 2021

4 Jun
2021

Report published

Fourth Report - COVID-19: Local government finance

20 Apr
2021

Correspondence

Correspondence from Jeremy Pocklington CB, Permanent Secretary, Ministry of Housing, Communities and Local Government, re Local Government …

18 Mar
2021

Oral evidence

COVID-19: Local Government Finance

18 Mar
2021

Correspondence

Correspondence from Jeremy Pocklington CB, Permanent Secretary Ministry, of Housing, Communities & Local Government, re Exceptional financi…

15 Mar
2021

Oral evidence

COVID-19: Local Government Finance

Oral evidence sessions 2 sessions

18 Mar 2021

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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

15 Mar 2021

View on parliament.uk

COVID-19: Local Government Finance

Carol Culley · Manchester City Council Lorna Baxter · Oxfordshire County Council Martin Reeves · Solace Rob Whiteman · CIPFA

Reports 1 report · click to expand

Title	HC No.	Published	Items	Response
Fourth Report - COVID-19: Local government finance	HC 239	4 Jun 2021	26	Responded

Recommendations & Conclusions

2 results

8 Conclusion Not Addressed

Fourth Report - COVID-19: Local go…

In addition to the March and April unringfenced funding, the Department provided two further tranches...

In addition to the March and April unringfenced funding, the Department provided two further tranches of unringfenced funding in 2020–21, bringing the total value of these grants to £4.55 billion. The Department took us through the ways in which its … Read more

Government Response

The government response reiterates the figures from the Committee's conclusion, stating that £4.55 billion in un-ringfenced grants were provided by early December 2020, as part of £9.1 billion in total COVID-19 funding for local authorities.

HM Treasury

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14 Recommendation Not Addressed

Fourth Report - COVID-19: Local go…

We received written evidence from representative of the local government sector criticising a range of...

We received written evidence from representative of the local government sector criticising a range of support schemes that were introduced during the pandemic, particularly business grants, as being complex or challenging to administer.30 Pandemic business rates relief started in March … Read more We received written evidence from representative of the local government sector criticising a range of support schemes that were introduced during the pandemic, particularly business grants, as being complex or challenging to administer.30 Pandemic business rates relief started in March 2020 and the first business support grants distributed through local authorities started in April 2020.31 In relation to business grants, SOLACE told us that “the centrally set rules have been counterproductive” and on occasion had led to some councils “rapidly trying to ‘chuck the money out of the door’”, risking the effectiveness of spending and some assurance against fraud. SOLACE also told us “we made it clear to the Government early on with our business community that [the 26 Q32; LGF0007 submission from SIGOMA paras 2.18, 3.1; C&AG’s report, para 2.15–2.16. 27 Qq 34, 47 28 Q89 29 Department of Health & Social Care, Social Care Sector: Covid-19 Support Taskforce Final Report, September 2020, particularly recommendation 34 30 Qq 10, 12, 30, 33; LGF0011 submission from SOLACE pages 2 and 3, LGF0003 submission from DCN paragraphs 13 and 17, LGF0007 submission from SIGOMA paragraphs 2.15 and 2.16, LGF0010 submission from CIPFA paragraphs 3.5–3.6; C&AG’s Report, para 2.17 31 Financial support for businesses during coronavirus (COVID-19); Coronavirus grant funding: local authority payments to small and medium businesses 14 COVID-19: Local government finance proliferation of business grants] just needed to be rationalised.”32 However, the District Council Network (DCN) observed that it was not until March 2021 that BEIS responded to calls to simplify the schemes.33 SIGOMA pointed out in relation to a wide range of grants that “there seems to be a lack of appreciation in government” that the nature and timing of the government’s own scheme rules would have an impact on the speed with which authorities would start to make payments under the schemes.34 In April 2020, the London Chamber of Show less

Government Response

The government's response, while stating agreement, does not directly address the recommendation to simplify complex support schemes but instead focuses on improving inter-departmental understanding of local government finance, committing to a written update on this.

HM Treasury

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Government Response AI assessment · 26 of 18 classified

Accepted 15

Acknowledged 4

Deferred 5

Not Addressed 2

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