Addressee: Ministry of Housing Communities and Local Government · Source location: Page 13, Recommendation A, Bullet 1
We recommend that MHCLG build on recent announcements to develop
a whole-system approach to local government financial sustainability.
This approach would consider interdependencies and consequences across
services and departmental boundaries and should be underpinned by clear
expectations of local government. It should do this by:
? taking the lead in building a cross-government approach to local
government financial sustainability ? for this to be effective and to improve
understanding of the wider impact of their choices on local authorities,
other government departments must have an up-to-date understanding of
the priorities, pressures and opportunities across services local authorities
are expected to deliver;
Response position:
Accepted
Delivery:
In progress
· Q4 2028-29
· Confirmed by NAO
Addressee: Ministry of Housing Communities and Local Government · Source location: Page 13, Recommendations, a, bullet two
We recommend that MHCLG build on recent announcements to develop a whole-system approach to local government financial sustainability. This approach would consider interdependencies and consequences across services and departmental boundaries and should be underpinned by clear expectations of local government. It should do this by:
as part of the spending review, developing a plan for funding and service reform to address the financial and demand pressures on local authorities, focusing on long-term value for money underpinned by clear priorities across departmental boundaries.
Response position:
Accepted
Delivery:
In progress
· Q4 2028-29
· Confirmed by NAO
Addressee: Ministry of Housing Communities and Local Government · Source location: Page 14, Recommendation, b, bullet one
We recommend that MHCLG:
explore how the impact of preventative services can be evaluated and
incentivised to deliver better outcomes and improved value for money
Response position:
Accepted
Delivery:
In progress
· Q4 2028-29
· Confirmed by NAO
Addressee: Ministry of Housing Communities and Local Government · Source location: Page 14, Recommendations, b, bullet two
We recommend that MHCLG:
work with the local government sector to improve the transparency and
consistency of local authority reporting on reserves to aid understanding
of local authorities? overall financial positions;
Response position:
Accepted
Delivery:
In progress
· Q4 2028-29
· Confirmed by NAO
Addressee: HM Treasury · Source location: Page 14, Recommendations, c, bullet one
As part of the spending review, and to support a cross-departmental approach, we recommend that HM Treasury: work to provide a spending framework that supports the government?s plans for local government funding and service reform
Response position:
Accepted
Delivery:
Implemented
· Q4 2025-26
· Confirmed by NAO
Addressee: Ministry of Housing Communities and Local Government · Source location: Page 14, Recommendations, b, bullet 3
We recommend that MHCLG:
as a matter of urgency, work with DfE to support local authorities to
sustainably manage their dedicated schools grant and address the
cumulative deficits before the statutory override ends on 31 March 2026.
Response position:
Accepted
Delivery:
Implemented
· Q4 2025-26
· Confirmed by NAO
Addressee: HM Treasury · Source location: Page 14, Recommendations, c, bullet two
As part of the spending review, and to support a cross-departmental approach,
we recommend that HM Treasury:
incentivise government departments to invest in preventative services
to deliver better outcomes and improved value for money
Response position:
Accepted
Delivery:
Implemented
· Q4 2025-26
· Confirmed by NAO