Source · Select Committees · Housing, Communities and Local Government Committee
Recommendation 24
24
Deferred
Align accountability for national taxation decisions impacting local government between departments
Conclusion
The Ministry and HM Treasury must work together to align accountability over decisions that affect local government, including around national taxation. Authority over tax decisions that affect local government and responsibility for the financial sustainability of local government should be held together, perhaps by a single Minister who can work across departments at the Ministry and HM Treasury. (Recommendation, Paragraph 83) 76 The big pressures
Government Response Summary
The Government did not address aligning accountability for local government finance across departments, instead discussing Section 114 notices, financial flexibilities for councils, and an upcoming consultation on support frameworks.
Government Response
Deferred
HM Government
Deferred
75. Section 114 notices exist within a wider system of checks and balances that highlight local authority financial risk. Government recognises that, in some cases, financial flexibilities can help enable local authorities to manage budgetary pressures over a multi-year period, for example in managing unexpected pressures that arise. However it is important that any financial flexibilities are balanced with the aim of supporting long term sustainability and ensuring Value for Money. Through the FFR 2.0 consultation, we invited views on how financial flexibilities could support local authorities in the context of reform, during the transitional period . We will set out further detail on this in the autumn.