Source · Select Committees · Public Accounts Committee
31st Report - Local Government Financial Sustainability
Public Accounts Committee
HC 647
Published 18 June 2025
Recommendations
6
Rejected
Set out detailed timetable of local government finance reforms, implementation plans, and transitional arrangements.
Recommendation
There is significant uncertainty around how the proposed local government finance reforms and reorganisation will be implemented. Long standing plans for funding and service reforms have been delayed several times. The government has now announced a huge reform agenda for …
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Government Response Summary
The government rejected the recommendation to review the impact of switching to council tax funding, arguing that council tax is a locally determined and flexible funding stream, and existing mechanisms like the Fair Funding Review 2.0 already address proposals for better accounting for tax generating ability.
HM Treasury
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