Select committee: Housing, Communities and Local Government Committee
Conclusion 1
Third Report - Financial distress in local authorities
Published 1 Feb 2024
Paragraph 25
Addressed to Ministry of Housing, Communities and Local Government
Housing, Communities and Local Government Committee Financial distress in local authorities All items in this report Report on parliament.uk ↗ Inquiry on parliament.uk ↗
Conclusion (the committee's words)
Local authorities have seen significant reductions in their spending power coincide with increasing demand for their services and inflationary pressures exceeding those in the wider economy. Recent funding settlements, while increasing in cash terms, have not kept pace with these pressures leading to a downward spiral. The prospect of further real terms funding cuts is likely to exacerbate existing concerns about systemic underfunding, with the current funding gap already estimated at £4 billion.
From: Housing, Communities and Local Government Committee, Third Report - Financial distress in local authorities (HC 56), paragraph 25, 1 February 2024
Government response
The government responded to the whole report on 26 March 2024 (deadline 1 April 2024).