Source · Select Committees · Housing, Communities and Local Government Committee
Recommendation 21
21
Deferred
Strengthen the New Burdens doctrine to include increased costs for local authority services
Conclusion
The New Burdens doctrine must be reviewed, updated, and put on a stronger statutory footing. It must focus not only on new responsibilities, but on any increase in the costs of mandatory services delivered by local authorities. For any such increase in cost, there must be a proportionate increase in central government funding. (Recommendation, Paragraph 76)
Government response summary AI-generated
The Government did not address the recommendation to review and strengthen the New Burdens doctrine, instead discussing national business rates multipliers, local relief powers, and generally keeping all tax policy under review.
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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