Source · Select Committees · Housing, Communities and Local Government Committee
Recommendation 10
10
The proliferation in recent years of small, often one-off and ring-fenced grants, sometimes involving a...
Conclusion
The proliferation in recent years of small, often one-off and ring-fenced grants, sometimes involving a competitive bidding process, and the uncertainty around such funding, can hinder robust financial planning and management by local authorities, as has been acknowledged by the Public Accounts Committee. Ring- fenced grants also limit councils’ flexibility to match spending to need. Reducing their number would give councils greater control over spending and would be consistent with our previous recommendation that councils be given great revenue- raising powers. (Paragraph 43) Local authority financial sustainability and the section 114 regime 41
Government Response
Acknowledged
HM Government
Acknowledged
Government agrees that a stable funding environment ensures local authorities can plan effectively and recognises that multi-year settlements provide certainty. The approach to the next settlement will be informed by the ongoing Spending Review, which will be an opportunity to consider local government’s funding needs in the round. We appreciate that multiple, competitive funds bring challenges to local councils. We are exploring opportunities to simplify the system, while recognising that there will be cases where competitions or ringfences are helpful in ensuring value for money.