Source · Select Committees · Public Accounts Committee
Recommendation 14
14
We received written evidence from representative of the local government sector criticising a range of...
Conclusion
We received written evidence from representative of the local government sector criticising a range of support schemes that were introduced during the pandemic, particularly business grants, as being complex or challenging to administer.30 Pandemic business rates relief started in March 2020 and the first business support grants distributed through local authorities started in April 2020.31 In relation to business grants, SOLACE told us that “the centrally set rules have been counterproductive” and on occasion had led to some councils “rapidly trying to ‘chuck the money out of the door’”, risking the effectiveness of spending and some assurance against fraud. SOLACE also told us “we made it clear to the Government early on with our business community that [the 26 Q32; LGF0007 submission from SIGOMA paras 2.18, 3.1; C&AG’s report, para 2.15–2.16. 27 Qq 34, 47 28 Q89 29 Department of Health & Social Care, Social Care Sector: Covid-19 Support Taskforce Final Report, September 2020, particularly recommendation 34 30 Qq 10, 12, 30, 33; LGF0011 submission from SOLACE pages 2 and 3, LGF0003 submission from DCN paragraphs 13 and 17, LGF0007 submission from SIGOMA paragraphs 2.15 and 2.16, LGF0010 submission from CIPFA paragraphs 3.5–3.6; C&AG’s Report, para 2.17 31 Financial support for businesses during coronavirus (COVID-19); Coronavirus grant funding: local authority payments to small and medium businesses 14 COVID-19: Local government finance proliferation of business grants] just needed to be rationalised.”32 However, the District Council Network (DCN) observed that it was not until March 2021 that BEIS responded to calls to simplify the schemes.33 SIGOMA pointed out in relation to a wide range of grants that “there seems to be a lack of appreciation in government” that the nature and timing of the government’s own scheme rules would have an impact on the speed with which authorities would start to make payments under the schemes.34 In April 2020, the London Chamber of
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.