Source · Select Committees · Housing, Communities and Local Government Committee
Recommendation 12
12
Paragraph: 54
The Government deserves credit for having responded to an unprecedented crisis with significant emergency funding...
Conclusion
The Government deserves credit for having responded to an unprecedented crisis with significant emergency funding that, from a national perspective, broadly covers all the additional financial pressures consequent on the pandemic and lockdowns in 2021–22. The effects of the pandemic will be felt for many years, however, and we are concerned that the Government has not committed to covering costs arising in future years, including from lost council tax and business rates. We are concerned, too, that some local authorities have been worse hit than others, particularly shire districts, and that some of these councils, even with the additional government funding, will still be left out of pocket. The disproportionate impact on local authorities will not assist the Government’s levelling up agenda.
Paragraph Reference:
54
Government Response
Acknowledged
HM Government
Acknowledged
Providing certainty and stability to the sector throughout the pandemic has been a priority for the Government. The Government has demonstrated this by committing over £12 billion to councils in England to tackle the impacts of COVID-19, over £6 billion of which was unringfenced. Tranches 3 and 4 of our support through the pandemic alongside the additional £1.55 billion of unringfenced funding for 2021/22 distributed expenditure grant based on need through the COVID-19 Relative Needs Formula (RNF). This new formula was designed to account for population, deprivation and the varying costs of delivering services across the country. The Government has always ensured that funding is distributed according to need to local authorities, with each funding allocation informed by the latest assessment of pressures reported by councils. We have continued to work with local government, including through tailored financial monitoring. The Government is continuing to use monitoring information and engagement with the sector to inform its work on the ongoing Spending Review. The Government recognises that there will be individual authorities with either unique circumstances or residual issues resulting in significant pressures. We will continue to work with them and keep the situation under review.