Source · Select Committees · Public Accounts Committee
Recommendation 3
3
Government support schemes during the pandemic were not always designed with sufficient knowledge of local...
Conclusion
Government support schemes during the pandemic were not always designed with sufficient knowledge of local government finance or input from the sector. Representatives of the local government sector assert that government departments other than MHCLG did not always engage with the sector during the pandemic sufficiently and consequently were not well informed about the pressures and needs of the sector when designing support schemes. This has resulted in support schemes being designed with too much bureaucracy, a lack of co-ordination, and a focus on speed of delivery that does not always take account of the need for assurance against fraud. These issues place additional burdens on local authorities. For instance, an announcement that business support grants would be simplified came almost one year after they were introduced. The Department recognises that communication with local government is variable across Whitehall. At least one other department has now recognised this itself. The Department for Health and Social Care has identified lessons in relation to adult social care through the work of the Adult Social Care taskforce, including the need to boost its expertise and capacity in relation to social care, and improve local engagement. We are less confident that other departments have recognised the issue. Recommendation: HM Treasury, the Department for Education, the Department of Health & Social Care, the Department for Business, Energy & Industrial Strategy, the Department for Environment, Food & Rural Affairs, and the Department for Digital, Culture, Media & Sport, in co-operation with the Department, should write to us by October 2021 setting how they will improve, and then maintain, their understanding of the operational realities of local government finance and the financial pressures authorities face.
Government Response
Acknowledged
HM Government
Acknowledged
3.1 The government agrees with the Committee’s recommendation. Target implementation date: October 2021 3.2 The department has worked closely with other government departments to ensure a coordinated response that takes close account of local government financial pressures, including on the design of the Local authority COVID-19 financial impact monthly monitoring, and through communication of the results. The department has also led sector engagement and ensured two-way communication between other departments and local authorities, including meetings on specific policy problems, as well as virtual visits and themed roundtables, to encourage knowledge-sharing. 3.3 The department has utilised established processes and cross-Whitehall relationships at every level, helping to embed local government finance intelligence – both technical expertise and monthly monitoring data - into policy-making processes at the earliest opportunity. 3.4 The department will work alongside other government departments to help them assess what steps can be taken to further a greater understanding of local government finance. 3.5 The department will coordinate a written response to the Committee by October 2021 outlining how each department plans to improve, and then maintain, their understanding of the operational realities of local government finance and the financial pressures authorities face.