Source · Select Committees · Public Accounts Committee
Recommendation 16
16
Deferred
Delayed local government finance settlement omits minimum wage provisions for councils.
Recommendation
We asked about the local government finance settlement for 2024–25, noting that the longer the settlement is delayed, the more difficult it is for local authorities to prepare their budgets. DLUHC told us that in 2022 it had set out a policy statement that outlined not only the settlement for 2023–24 but also the outlines and main grants for 2024–25. The draft local government settlement for 2024–25 was, however, only published in full in December 2023, and did not include any provision for the update in the minimum wage announced in the autumn statement.35 A £600 million increase to this settlement, including £500 million for adult and children’s social care, was announced during our evidence session, but the final settlement was not confirmed until early February 2024.36 28 RSE0014, 29 Qq 10, 56–60 30 Qq 58–60 31 Committee of Public Accounts: Alcohol treatment services, Fifty-Fourth Report of Session 2022–23, HC 1001, 24 May 2023; and Reducing the harm from illegal drugs, Eleventh Report of Session 2023–24, HC 72, 9 February 2024 32 Committee of Public Accounts, Adult Social Care Markets, Seventh Report of Session 2021–22, HC 252, 16 June 2021 33 C&AG’s Report, para 7 34 RSE0013 35 Qq 3–5 36 Qq 107–115; Department for Levelling Up, Housing and Communities, Final local government finance settlement: England, 2024 to 2025, 5 February 2024 14 Reforming adult social care in England
Government Response Summary
The government states the recommendation is implemented, affirming its commitment to providing as much certainty as possible for local authorities through future spending reviews. They are learning from current reforms and monitoring funding to inform preparations for the next spending review, aiming to deliver a sustainable funding package for Adult Social Care.
Government Response
Deferred
HM Government
Deferred
3.1 The government agrees with the Committee’s recommendation. Recommendation implemented 3.2 The department is making good progress towards the 10-year vision for adult social care set out in the People at the Heart of Care white paper. The department is learning from the first phase of reform, to inform plans for the next spending review period and beyond. The department is also monitoring the impact of the additional funding provided in this spending review period, with a total of up to £8.6 billion made available across two financial years. This is alongside reforms to local government accountability and data transparency, that will shed further light on local performance, all of which will inform the department’s spending review preparations. 3.3 The department recognises the value of providing longer term certainty of funding to local authorities. The 2021 Spending Review set out funding for local government for three years, providing the same level of certainty as for government departments. The government will always seek to provide as much certainty as possible for local authorities when providing funding for delivering services, whilst maintaining flexibility to respond to unexpected pressures. 3.4 The department will work with HM Treasury and the Department for Levelling Up, Housing and Communities to make sure the next spending review delivers a sustainable funding package for Adult Social Care.