Source · Select Committees · Housing, Communities and Local Government Committee
Recommendation 7
7
Accepted
Appoint a single Minister accountable for each mandatory local government service across departments.
Recommendation
We support the calls by the National Audit Office and Public Accounts Committee that the Government must provide cross-government reform to ensure that the entire system of local government is sustainable. The Ministry must collaborate with other departments on this and there must be clear lines of accountability. We also recommend that, for each mandatory service delivered by local government, a single Minister should have both the responsibility for delivering that service and the authority to coordinate work across all relevant departments. The power and responsibility for decision-making should be held by the same person so that effective action can be taken across departmental boundaries. (Recommendation, Paragraph 39)
Government Response Summary
The government committed to further funding simplification for 2026–27, intending to consolidate grants from across government into large ringfenced grants delivered via the Settlement and rolling suitable grants into the Revenue Support Grant, building on previous consolidations.
Government Response
Accepted
HM Government
Accepted
31. We know that previous governments increasingly relied on ringfenced micro-grants to deliver departmental priorities. This Government recognises that this fragmented, restrictive funding system is not sustainable. In 2025–26 we consolidated almost £700m into the LGFS. We are going further and faster for 2026–27 and will deliver the biggest programme of funding simplification to date. 32. As laid out in the FFR 2.0 consultation, the Government intends to bring together grants from across government into large ringfenced consolidated grants, delivered as part of the Settlement. This will provide multi- year certainty over as much funding as possible, and reduce the late announcement of funding throughout the financial year. Many of these large grants will be structured to support prevention and service reform, as well as encouraging closer working across departments. Wherever possible, we will also roll suitable grants into the Revenue Support Grant, reducing the complexity of the funding landscape and number of micro grants local authorities currently have to manage. 33. The scale of change we are looking to deliver will take time and requires a cultural shift across government. Therefore, our work will continue beyond the upcoming LGFS to work across government to move away from using ringfences and other reporting requirements.