Source · Select Committees · Housing, Communities and Local Government Committee
Recommendation 19
19
Deferred
Unfunded mandates contribute to the local government sector's lack of sustainability
Conclusion
Unfunded mandates (responsibilities for local authorities without adequate funding or compensation) contribute to the lack of sustainability in the local government sector. (Conclusion, Paragraph 74)
Government response summary AI-generated
The government noted a recommendation to reform or replace council tax (not the provided conclusion) and stated that all tax policy remains under review, with decisions made by the Chancellor at fiscal events.
Summary of the government's response below — read the verbatim text to verify.
Government Response
Deferred
HM Government · verbatim extract
Deferred
38. The New Burdens Doctrine exists to ensure that where central government places new statutory duties or instructs changes in how existing responsibilities must be delivered, local authorities are properly funded. The Government has explored whether the New Burdens Doctrine should be placed on a statutory footing and our view is that this would reduce its effectiveness. The Doctrine is deliberately designed to be dynamic allowing us to respond flexibly to new policy requirements, financial constraints, and delivery risks as they arise. In practice, it functions as a central mechanism for holding departments to account when they introduce new legal duties without local input. Locking it into legislation would limit its ability to evolve alongside wider public service reform. 39. As we look to the future, it is important that the Doctrine continues to reflect the evolving landscape of local government delivery. To that end, we are currently reviewing and updating the New Burdens doctrine to ensure it remains effective and proportionate. As part of this, we are considering how to better account for costs associated with bidding processes and a more efficient way of ensuring councils fully benefit from New Burdens funding by streamlining the payment process, as outlined in the FFR 2.0 consultation.
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