Recommendations & Conclusions
4 items
34
Recommendation
2nd Report - The Funding and Sustainabi…
Accepted in Part
As we recommended in our previous report, England’s Homeless Children, the Government should reconsider its decision to freeze Local Housing Allowance rates and should extend its support for local authorities to acquire new housing stock through the Local Authority Housing Fund. (Recommendation, Paragraph 121)
Government response. The government confirms it will not reconsider freezing Local Housing Allowance rates, citing fiscal context and prioritization of other support funds. However, it accepts the recommendation to extend support for the Local Authority Housing Fund, announcing £950 million in capital …
Ministry of Housing, Communities and Local Government
37
Recommendation
2nd Report - The Funding and Sustainabi…
Accepted in Part
The Government’s new funding formula must consider the effect of disparities between wards and sub-wards within single local authorities, which can be hidden when only considering the data at the level of whole local authorities. Measures of deprivation used in the new funding formula must account for local housing costs. …
Government response. The government states its needs assessments vary in granularity and that MHCLG is working with DWP to incorporate housing costs into the 2025 Index of Multiple Deprivation, with a final decision on its inclusion to be made in the autumn.
Ministry of Housing, Communities and Local Government
45
Recommendation
2nd Report - The Funding and Sustainabi…
Accepted in Part
The business rates system, or any alternative tax system for business property, must be designed to incentivise councils to encourage growth in their areas. We are concerned that any full, cliff-edge reset of business rates will reduce this incentive by withdrawing the benefits of growth. (Conclusion, Paragraph 169)
Government response. The government acknowledges concerns about cliff-edges, stating it will design transitional arrangements for the 2026 reset and will not reset the system again during the current multi-year settlement. It defers the timing and design of the next reset to a …
Ministry of Housing, Communities and Local Government
48
Recommendation
2nd Report - The Funding and Sustainabi…
Accepted in Part
The Government must be more courageous with its long-term plans for the funding of local government. While stabilisation is important in the short term, both the Ministry and HM Treasury need to start considering how to get the sector back to full strength, which will need to include serious consideration …
Government response. The government has committed new grant funding and plans fundamental funding reforms from 2026-27, while also advancing measures through a Bill to empower Mayors with fiscal powers, including the ability to charge a Mayoral Community Infrastructure Levy (CIL) and add …
Ministry of Housing, Communities and Local Government