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Government support schemes during the pandemic were not always designed with sufficient knowledge of local...
Recommendation
Government support schemes during the pandemic were not always designed with sufficient knowledge of local government finance or input from the sector. Representatives of the local government sector assert that government departments other than MHCLG did not always engage with the sector during the pandemic sufficiently and consequently were not well informed about the pressures and needs of the sector when designing support schemes. This has resulted in support schemes being designed with too much bureaucracy, a lack of co-ordination, and a focus on speed of delivery that does not always take account of the need for assurance against fraud. These issues place additional burdens on local authorities. For instance, an announcement that business support grants would be simplified came almost one year after they were introduced. The Department recognises that communication with local government is variable across Whitehall. At least one other department has now recognised this itself. The Department for Health and Social Care has identified lessons in relation to adult social care through the work of the Adult Social Care taskforce, including the need to boost its expertise and capacity in relation to social care, and improve local engagement. We are less confident that other departments have recognised the issue. Recommendation: HM Treasury, the Department for Education, the Department of Health & Social Care, the Department for Business, Energy & Industrial Strategy, the Department for Environment, Food & Rural Affairs, and the Department for Digital, Culture, Media & Sport, in co-operation with the Department, should write to us by October 2021 setting how they will improve, and then maintain, their understanding of the operational realities of local government finance and the financial pressures authorities face.
Government Response
A response document is linked to this report, dated 2 September 2021. Response attribution to this conclusion has not been verified. Read the response document.
Source
Committee
Public Accounts Committee
Report
Fourth Report - COVID-19: Local government finance
04 Jun 2021
HC 239
Addressee Bodies
HM Treasury
Timeline
Recommendation age
5.3 yrs
Report published
04 Jun 2021