Source · Select Committees · Housing, Communities and Local Government Committee
Recommendation 52
52
Deferred
End the routine use of capitalisation directions within Exceptional Financial Support for local authorities.
Recommendation
The Government should aim to end the use of capitalisation directions as a standard part of EFS. Alternative measures to support local authorities must improve local government sustainability not only in the short term, but in the long term as well. EFS should remain a short-term measure, after which the Government must use an alternative approach for a long-term solution. (Recommendation, Paragraph 200)
Government Response Summary
The government has invited views on transitional arrangements and financial flexibilities as part of a consultation and will set out further detail on an updated support framework in the autumn, without explicitly committing to ending capitalisation directions.
Government Response
Deferred
HM Government
Deferred
The Government is committed to improving how we assess the need to ensure central government funding is distributed fairly to the places who need it most. The Government recognises the importance of transitional arrangements and as noted above, we invited views in the consultation on a package of transitional arrangements that enable local authorities to plan for these changes. This included views on the approach to financial flexibilities to support local authorities in the context of reform, during the transitional period. The Government will set out further detail on an updated support framework in the autumn.