Source · Select Committees · Housing, Communities and Local Government Committee
Recommendation 14
14
Deferred
Implement agreed outcomes-based system for local authority accountability before 2026/27 financial year.
Conclusion
After the conclusion of the Framework’s live call for evidence and before the start of the 2026/27 financial year, the Ministry must implement the agreed outcomes-based system, by which local authorities will be held accountable for achieving the agreed outcomes within their overall budgets and not for meeting spending targets for individual services. (Recommendation, Paragraph 63)
Government response summary AI-generated
The government's response detailed ongoing reforms to NHS Integrated Care Boards and efforts to strengthen partnerships between the NHS and local government, rather than committing to implement an outcomes-based accountability system for local government.
Summary of the government's response below — read the verbatim text to verify.
Government Response
Deferred
HM Government · verbatim extract
Deferred
28. The Government recognises that greater flexibility for local decision-making is critical to the sustainability of local government. The former Deputy Prime Minister announced the LGOF on 3 July 2025, setting the direction of travel towards outcome-based accountability for councils in England, focused on the impact of spending on local communities rather than micro-control of ringfenced grants. 29. Following a period of engagement with the local government sector, the final Framework will be published alongside the provisional Local Government Finance Settlement for 2026–27. We expect that from April 2026, government will actively use the Framework to support delivery and, where necessary, take action in response to poor public service outcomes for local people. 30. A full transition to outcomes-based accountability will require a significant cultural shift across central and local government and our work will continue beyond April 2026. This includes working across government to move further away from using ringfences and other reporting requirements, and working with local government to ensure outcomes-based accountability is implemented in a way that genuinely supports councils to improve outcomes for local people.
Read the full response on Parliament ↗