Select committee: Housing, Communities and Local Government Committee

Recommendation 8

Third Report - Financial distress in local authorities Published 1 Feb 2024 Paragraph 51 Addressed to Ministry of Housing, Communities and Local Government
Recommendation (the committee's words)
The Government should ensure that the implications of any additional flexibilities it grants on capital funding are carefully considered. We recommend that these are limited to extending flexibilities over invest-to-save activity only. The Government must closely monitor local authorities’ uptake of these flexibilities and act quickly to work with local authorities in preventing unintended negative consequences. The use of capital funding for revenue expenditure must not become business as usual and is not a sufficient substitute for more fundamental reform of the funding system.

From: Housing, Communities and Local Government Committee, Third Report - Financial distress in local authorities (HC 56), paragraph 51, 1 February 2024

Government response

The government responded to the whole report on 26 March 2024 (deadline 1 April 2024).

Read the government's response ↗ Report an error