Fourth Report - COVID-19: Local government finance

Select Committee

Public Accounts Committee HC 239 4 June 2021

Report Status Government responded

Conclusions & Recommendations 26 items (18 recs)

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Government Response (AI assessment · 26 of 26 classified)

Accepted 15

Acknowledged 4

Deferred 5

Not Addressed 2

Government response

Treasury minutes: Government response to the Committee of Public Accounts on the Fourth report from Session 2021-22 · published 2 Sep 2021

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Recommendations & Conclusions

2 results

8 Conclusion Not Addressed

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

Conclusion

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 Summary

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

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

Recommendation

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 Summary

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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