The Department told us the spending review “gives local government, looking at the sectoral level, the resources that it needs” to respond to rising demand and cost pressures, and “leaves the sector in a sustainable position.”73 The Department and the Treasury stressed the work carried out to underpin this conclusion. They told us they considered the impact of the pandemic on local authority income and estimated demand, demographics and unit costs for key public services, including the impact of COVID-19 on demand for children’s services.74 When we asked about continued upward pressure on council tax, the Department emphasised the additional grant funding and pointed out that the increase in council tax during this spending review will be lower than in recent years.75 The Treasury pointed out that the assumptions that council tax would rise by up to 3% was lower than inflation next year.76 The Department told us that it was also providing additional support to improve the quality of services, such as through funding for family help.77 Both the Department and the Treasury were confident that this time there would be no need to return to the Treasury for top-ups and short-term funding for local government during the spending review period.78 Yet the Department acknowledged that the local government sector is under pressure at the moment and it will continue to “monitor closely and engage carefully with the sector, particularly the councils that need it the most” during the spending review period.79