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Delayed local government finance settlement omits minimum wage provisions for councils.

Recommendation
We asked about the local government finance settlement for 2024–25, noting that the longer the settlement is delayed, the more difficult it is for local authorities to prepare their budgets. DLUHC told us that in 2022 it had set out a policy statement that outlined not only the settlement for 2023–24 but also the outlines and main grants for 2024–25. The draft local government settlement for 2024–25 was, however, only published in full in December 2023, and did not include any provision for the update in the minimum wage announced in the autumn statement.35 A £600 million increase to this settlement, including £500 million for adult and children’s social care, was announced during our evidence session, but the final settlement was not confirmed until early February 2024.36 28 RSE0014, 29 Qq 10, 56–60 30 Qq 58–60 31 Committee of Public Accounts: Alcohol treatment services, Fifty-Fourth Report of Session 2022–23, HC 1001, 24 May 2023; and Reducing the harm from illegal drugs, Eleventh Report of Session 2023–24, HC 72, 9 February 2024 32 Committee of Public Accounts, Adult Social Care Markets, Seventh Report of Session 2021–22, HC 252, 16 June 2021 33 C&AG’s Report, para 7 34 RSE0013 35 Qq 3–5 36 Qq 107–115; Department for Levelling Up, Housing and Communities, Final local government finance settlement: England, 2024 to 2025, 5 February 2024 14 Reforming adult social care in England
Government Response

A response document is linked to this report, dated 28 May 2024. Response attribution to this conclusion has not been verified. Read the response document.

Addressee Bodies
HM Treasury
Timeline
Recommendation age 2.5 yrs
Report published 20 Mar 2024