Source · Select Committees · Housing, Communities and Local Government Committee
Recommendation 11
11
The next financial settlement for local government must be a multi-year settlement.
Recommendation
The next financial settlement for local government must be a multi-year settlement. The Government should also consolidate the number of small and ring-fenced grants, which can limit local authorities’ ability to provide services flexibly, and should reduce the number of bidding processes, which can be burdensome and time consuming. (Paragraph 44) Covid-19
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.