Source · Select Committees · Public Accounts Committee
Recommendation 30
30
Accepted
Multiple complex local government reforms and reorganisation are happening simultaneously.
Recommendation
Given the range of proposed reforms as well as local government reorganisation, we pressed MHCLG on the timing and sequencing. MHCLG responded that “it is all happening at once”.84 It accepted that funding reform plans may need to be adapted depending on the outcome of the Casey Commission, which is not due to report until 2028. However, newly formed local authorities would not go live until April 2028 and so it was not planning to factor in local government reorganisation into the multi-year settlement from 2026–27.85 We asked MHCLG whether local government is in a fit state to cope with all this change.86 It told us it did not underestimate the complexity and capacity constraints on councils, but the reforms and reorganisation needed to be done to make sure local government could succeed into the future. MHCLG was optimistic about achieving the necessary reform and reorganisation, saying “we need to achieve all of it”, while recognising that it did not have a choice due to the seriousness of the current state of local government.87 78 Q 43 79 Q 54 80 Qq 4, 53, 57 81 Q 45 82 Q 43 83 Q 88 84 Q 89 85 Qq 89, 90 86 Q 110 87 Q 110 20
Government Response Summary
The government accepts the recommendation regarding the timing and sequencing of reforms, detailing ongoing initiatives like the Fair Funding Review 2.0 and multi-year settlements, alongside commitments to reform children's social care, adult social care, SEND, and homelessness by specified dates.
Government Response
Accepted
HM Government
Accepted
2.1 The government agrees with the Committee’s recommendation. Target implementation date: by the end of 2025, as part of the upcoming multi-year Local Government Finance Settlement. 2.2 On 20 June 2025, the government published the Fair Funding Review 2.0 consultation which set out the approach to radically simplify local authority funding, to provide local authorities with more flexibility and certainty over a greater proportion of funding. This will be supported by the Local Government Outcomes Framework, establishing 15 national outcomes... To simplify local authority funding... the government intends to bring together grants from across departments into large ringfenced consolidated grants... 2.3 The government also proposes to simplify existing Settlement grant funding, including for adult social care... 2.4 The upcoming multi-year Settlement will pave the way for further consolidation in future years. 6.1 The government agrees with the Committee’s recommendation. Target implementation date: end of 2025. 6.2 The government issued invitations to councils... to submit proposals for unitary local government on 5 February 2025... 6.3 On 20 June 2025 the government published the Fair Funding Review 2.0 consultation, which invites views on proposals to reform local government funding... including proposed transitional arrangements. The government is committed to providing the sector as much certainty as possible... followed by a multi-year provisional Local Government Finance Settlement later this year. 6.4 The government agrees with the Committee’s recommendation. Target implementation date: end of 2025. 6.5 The government will provide further details on funding to support local authorities with key service pressures at the provisional Local Government Finance Settlement later in 2025. 6.6 The government is committed to reforming children’s social care... 2025 Spending Review confirmed over £2 billion over the next three years... 6.7 For adult social care, the Spending Review allows for an increase of over £4 billion in 2028-29... 6.9 Baroness Casey of Blackstock is leading an independent commission into adult social care... Phase 1 will report in 2026... 6.10 The Department for Education Spending Review settlement confirmed funding for reform of the Special Education Needs and Disabilities (SEND) system... 6.11 The government invested £1 billion in homelessness and rough sleeping services in 2025-26... A long-term homelessness and rough sleeping strategy will be published later in 2025.