Recommendations & Conclusions
6 items
1
Conclusion
2nd Report - The Funding and Sustainabi…
Acknowledged
The Government is undergoing the most significant local government reorganisation in decades. Substantial change, if not driven by a clear vision of what local government should be for and should be achieving, risks embedding undesirable elements of the current system into local government for the foreseeable future. (Conclusion, Paragraph 15)
Government response. The government acknowledged the importance of strong local government, referencing a statement by the former Deputy Prime Minister on building a modern state, and committed to continuing engagement with councils on necessary reforms, including funding.
Ministry of Housing, Communities and Local Government
10
Conclusion
2nd Report - The Funding and Sustainabi…
Acknowledged
Rebuilding and strengthening damaged preventative services will require temporary increases in central government funding before the demand for acute services starts to drop. (Conclusion, Paragraph 49)
Government response. The government is reviewing and updating the New Burdens Doctrine to ensure its effectiveness, including considering how to better account for bidding costs and streamline the payment process for councils.
Ministry of Housing, Communities and Local Government
33
Conclusion
2nd Report - The Funding and Sustainabi…
Acknowledged
It is a source of national shame that cases of homelessness, particularly among families and children, are at record levels and continue to rise. This is placing considerable strain on the finances of local authorities. We repeat the findings of our report of earlier this year, England’s Homeless Children: The …
Government response. The government acknowledges the concern about rising homelessness and outlines specific actions, including allocating £1 billion for the Household Support Fund and Discretionary Housing Payments and £950 million for the Local Authority Housing Fund to increase temporary accommodation supply.
Ministry of Housing, Communities and Local Government
35
Conclusion
2nd Report - The Funding and Sustainabi…
Acknowledged
We support the return to multi-year funding settlements, but the local government funding reforms announced to date will not solve the underlying problems in the system by themselves. (Conclusion, Paragraph 127)
Government response. The government acknowledges the need for local government funding reform, confirming its commitment to multi-year allocations through the 2026-27 LGFS and simplifying the funding landscape via the Fair Funding Review 2.0.
Ministry of Housing, Communities and Local Government
44
Conclusion
2nd Report - The Funding and Sustainabi…
Acknowledged
We acknowledge the Government’s current plans to reform business rates and the Business Rates Retention system, including the business rates reset and the addition of new multipliers. However, we remain concerned that the business rates system can harm growth, disincentivise investment, and entrench deprivation at local authority level. (Conclusion, Paragraph …
Government response. The government reiterates its commitment to transforming the business rates system to create a fairer system that supports investment, and acknowledges the importance of business rates in local government funding.
Ministry of Housing, Communities and Local Government
51
Conclusion
2nd Report - The Funding and Sustainabi…
Acknowledged
Exceptional Financial Support (EFS) by means of capitalisation direction is a stopgap measure that avoids section 114 notices and allows councils to produce short-term balanced budgets, but can weaken councils’ finances and capital investment in the long term. Capitalisation directions have been over-used for many years, and Exceptional Financial Support …
Government response. The government states it is committed to fair funding distribution and has consulted on transitional arrangements and financial flexibilities for local authorities, with further details on an updated support framework to be set out in the autumn.
Ministry of Housing, Communities and Local Government