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MHCLG acknowledges insufficient funding, aiming for efficiency and demand management amid uncertainties.
Recommendation
We challenged MHCLG as to whether its reforms will put local government finance on a sustainable footing. It acknowledged that there was not enough money in the system, so the aim of the reforms was to use the money available more efficiently and productively. But MHCLG also recognised the need to manage the demand pressures on local government and referenced planned reforms for children’s social care, SEND, homelessness and adult social care (the Casey Commission).82 It asserted that its approach was the right one, but with the caveat that it did not know the outcome of the spending review and international events could affect the overall economic position.83
Government Response
A response document is linked to this report, dated 18 September 2025. Response attribution to this conclusion has not been verified. Read the response document.
Source
Committee
Public Accounts Committee
Report
31st Report - Local Government Financial Sustainability
18 Jun 2025
HC 647
Addressee Bodies
HM Treasury
Timeline
Recommendation age
1.2 yr
Report published
18 Jun 2025