Select committee: Housing, Communities and Local Government Committee
Conclusion 3
Third Report - Financial distress in local authorities
Published 1 Feb 2024
Paragraph 40
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)
There is widespread agreement that Council tax is outdated, regressive, and long overdue for reform. The Government’s increasing reliance on council tax to fund local authorities is causing a disproportionately negative impact on funding levels for authorities in the most deprived areas of England. The Government’s imposition of referendum thresholds for increasing council tax is restricting local authorities’ abilities to raise sufficient funding to fulfil their statutory responsibilities, in response to reductions in central Government grants, increased demand for services, and inflationary pressures.
From: Housing, Communities and Local Government Committee, Third Report - Financial distress in local authorities (HC 56), paragraph 40, 1 February 2024
Government response
The government responded to the whole report on 26 March 2024 (deadline 1 April 2024).