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Third Report - Financial distress in local authorities

Housing, Communities and Local Government Committee HC 56 Published 1 February 2024
Report Status
Government responded
Conclusions & Recommendations
28 items (15 recs)
Government Response
AI assessment · 28 of 28 classified
Accepted 13
Accepted in Part 2
Acknowledged 4
Deferred 3
Not Addressed 1
Rejected 5
Government response
Response to Committee's Third Report Financial distress in local authorities · published 26 Mar 2024
Read the government response ↗ Response on the Index
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Recommendations & Conclusions

1 item
19 Conclusion Not Addressed
Para 119

Lack of clarity on funding responsibility for remaining deficits after statutory override ends.

Conclusion
The Government has provided no clarity on whether it will fund, or it will expect local authorities to fund, deficits remaining when the statutory override ends in March 2026.
Government Response Summary
The government highlights its commitment to placing local authorities on a sustainable financial footing regarding SEND provision, detailing ongoing Safety Valve and Delivering Better Value in SEND programmes with funding and expert support to help LAs eliminate deficits. However, it does not provide clarity on who will fund any deficits remaining after the statutory override ends in March 2026.
Ministry of Housing, Communities and Local Government
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