Source · Select Committees · Housing, Communities and Local Government Committee
Third Report - Financial distress in local authorities
Housing, Communities and Local Government Committee
HC 56
Published 1 February 2024
Recommendations
4
Rejected
Para 41
Urgently reform council tax by revaluing properties and introducing additional bands.
Recommendation
We repeat the recommendation made in our July 2021 report, Local Authority Financial Sustainability and the Section 114 Regime, and our November 2023 report, Council Tax Collection: namely, that: the Government must urgently reform council tax by undertaking a revaluation …
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Government Response Summary
The government rejects the recommendation for urgent council tax reform, specifically revaluation and additional bands, citing cost and potential impact on low-income households, deferring wider reform discussions to the next Parliament.
Ministry of Housing, Communities and Local Government
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5
Rejected
Para 42
Raise council tax referendum threshold in line with inflation; consider its long-term removal.
Recommendation
Furthermore, in the short-term, the Government must raise the referendum threshold for council tax at least in line with a relevant measure of inflation. In the longer- term we recommend that the Government considers removing the threshold entirely.
Government Response Summary
The government rejects the recommendation, stating its manifesto commitment is to protect local taxpayers from excessive council tax increases and defending the existing referendum threshold system as a balance between local authority flexibility and protecting residents. It does not agree to raise or remove the threshold.
Ministry of Housing, Communities and Local Government
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16
Rejected
Publish a 10-year plan to implement reforms from People at the Heart of Care white paper.
Recommendation
We also reiterate the recommendation we made in our July 2022 report for the Government to publish a 10-year plan for implementing the reforms set out in its white paper People at the Heart of Care. (Paragraph 95) Chapter 4: …
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Government Response Summary
The government rejects the recommendation to publish a 10-year plan for adult social care reforms, stating that such plans are subject to future Spending Reviews and fiscal events which prevent long-term funding certainty. It highlights its 'Next steps to put people at the heart of Care' plan for the current Spending Review period instead.
Ministry of Housing, Communities and Local Government
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22
Rejected
Para 122
Commission independent review of EHC Plans for fundamental reform and financially sustainable SEND provision.
Recommendation
The Department should commission a cross-government independent review of Education, Health and Care Plans and consider fundamental reform of this system, to put SEND provision on a financially sustainable footing for local authorities whilst ensuring that all children and young …
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Government Response Summary
The government rejects the recommendation for a new independent review, stating that a comprehensive SEND Review has already been completed, leading to a Green Paper and an Improvement Plan, making a further review unnecessary.
Ministry of Housing, Communities and Local Government
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Conclusions (1)
3
Conclusion
Rejected
Para 40
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 …
Government Response Summary
The government acknowledges the need to improve the local government finance landscape in the next Parliament but states it has no plans to revalue council tax bands and defends its existing referendum principles for council tax increases.