Source · Select Committees · Public Accounts Committee
Recommendation 18
18
Accepted
Department acknowledges current local road funding arrangements are complex and require simplification.
Conclusion
We questioned the Department on the complexity of its current funding arrangements and how well they are currently working. The Department agreed that funding is not streamlined and acknowledged arguments for simplification, recognising that consolidating funding might allow local authorities to spend money more effectively.32
Government Response Summary
The government agrees with the committee's implicit recommendation for funding simplification and intends to move to multi-year funding settlements for local government. They also plan to consolidate local highways maintenance funding streams into a single line to provide greater certainty and flexibility.
Government Response
Accepted
HM Government
Accepted
3.1 The government agrees with the Committee’s recommendation. Target implementation date: Summer 2025 3.2 Long term certainty is determined by the length of the settlement set out by a Spending Review. 3.3 The government is resetting the relationship with local government. The government intends to move to multi-year funding settlements in future, to provide long-term funding certainty for local government. The government has also set out plans to radically simplify the funding paid out to the sector – consolidating grants into the settlement wherever possible. This will give local authorities greater certainty and freedom to deliver their priorities. 3.4 The department also intends to consolidate local highways maintenance funding streams for those authorities who receive them, so that they receive one funding line only. In addition, those authorities in receipt of City Region Sustainable Transport Settlements (CRSTS) have their highway maintenance funding consolidated, further reducing the number of funding streams and providing greater flexibility in how mayoral combined authorities allocate funding.